Business, 27.02.2020 21:51, Evilgus4846

Betty runs a cookie shop where she sells cookies for $1 each. She employs five people, each of whom worked a total of 500 hours last year; she paid them $10 per hour. Her costs of equipment and raw materials add up to $75,000. Her business ability is legendary, and other companies have offered to pay Betty $100,000 to come to work for them. She also knows she could sell her cookie shop for $150,000. The bank in town pays an annual interest rate of 3% on all funds deposited with it.
Reference: Ref 9-18

(Scenario: Betty's Cookie Shop) Betty's implicit and explicit costs are equal to:

A) $80,000.
B) $100,000.
C) $204,500.
D) $184,500.

Answers: 1

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Betty runs a cookie shop where she sells cookies for $1 each. She employs five people, each of whom...