Barney decides to quit his job as a corporate accountant, which pays $10,000 a month, and goes into business for himself as a certified public accountant. he runs his business from his converted garage apartment, which he could rent out for $300 a month if he wasn’t using it as a home office. he must purchase office supplies worth $75 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. after six months of working from home, barney has earned an average of $12,000 per month. instructions: enter your answers as a whole number. a. what are barney’s monthly explicit costs? $ b. what are barney’s monthly implicit costs? $ c. what are barney’s monthly economic costs?

A- $ 50  Electricity

     $ 75   Office suplies

     $ 125Total explicit costs

B-  $ 300   Rent

$10000 Lost of salary for quitting his job

      $ 10300  Total implicit cost

C-  $ 125    Total explicit costs

     $ 10300   Total implicit cost

     $ 10425   Total economic cost

Explanation:

A- Explicit costs are observable (such as salaries paid to  employees, material costs, taxes, etc.) and are paid with cash.

B- Implicit costs are those incurred for giving up an alternative use of a specific resource, but no cash outlay is made. In this case, $ 300 that is no longer earned by using the garage as an office and $10000 lost each month for quitting his job.

C- The sum of the implicit and explicit costs determines the total economic cost

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cash flow statement possibly

according to the song of roland, the characteristics of an ideal knight are: loyalty to the king, skilled warriors and horseman, valiant, bold, courageous, strong and proud in battle. they should be determined to fulfil their duties and willing to die to make their people safe.