Classify the following costs as explicit or implicit. Explain your answer ABC Company spent $1000 for coffee and biscuits for their staff. Jim used $50000 from his savings account to buy a car for his business BHP paid interest on company issued bonds Frank spends 4 hours every weekend cleaning his office

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter8: Production And Costs
Section8.2: Two Sides To Every Business Firm
Problem 4ST
icon
Related questions
Question
Classify the following costs as explicit or implicit.
Explain your answer
ABC Company spent $1000 for coffee and biscuits
for their staff.
Jim used $50000 from his savings account to buy
a car for his business
BHP paid interest on company issued bonds
Frank spends 4 hours every weekend cleaning his
office
Transcribed Image Text:Classify the following costs as explicit or implicit. Explain your answer ABC Company spent $1000 for coffee and biscuits for their staff. Jim used $50000 from his savings account to buy a car for his business BHP paid interest on company issued bonds Frank spends 4 hours every weekend cleaning his office
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costs
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning