Question

If a firm has total costs of $535,000 and its implicit costs are $165,000, how much are its explicit costs

Answer 1

Answer:

$370,000

Explanation:

A firm has a total costs of $535,000

The implicit costs are $165,000

Therefore, the explicit costs can be calculated as follows

Explicit costs= total costs-implicit costs

= $535,000-$165,000

= $370,000

Hence the firm's explicit cost is $370,000