Explicit Cost (bought in the market) and implicit (owned by the company and the owner)
Juan and Julia contributed $50,000 of their own money to the company
They bought equipment for $3,000 They hired an employee with a salary of
$20,000
Juan quit his job where he earned $30,000 Julia quit part of her job where she earned
$15,000
• Purchases of materials for the business were $10,000
At the end of the year the value of the equipment is $28,000
· A business loan of $100,000 pays 6% annual interest
According to the data, what is the explicit limit or bought in the market?
