Max Shreck, an accountant, quit his $80,000-a-year job and bought an existing tattoo parlor from its previous owner, Sylvia Sidney. The lease has five years remaining and requires a monthly payment of $4,000. The lease A. is part of the marginal cost of operating the tattoo parlor. B. is an implicit cost of operating the tattoo parlor. C. is a variable cost of operating the tattoo parlor. D. is a fixed cost of operating the tattoo parlor.
Max Shreck, an accountant, quit his $80,000-a-year job and bought an existing tattoo parlor from its previous owner, Sylvia Sidney. The lease has five years remaining and requires a monthly payment of $4,000. The lease A. is part of the marginal cost of operating the tattoo parlor. B. is an implicit cost of operating the tattoo parlor. C. is a variable cost of operating the tattoo parlor. D. is a fixed cost of operating the tattoo parlor.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 1DQ
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Max Shreck, an accountant, quit his $80,000-a-year job and bought an existing tattoo parlor from its previous owner, Sylvia Sidney. The lease has five years remaining and requires a monthly payment of $4,000.
The lease
is part of the marginal cost of operating the tattoo parlor.
is an implicit cost of operating the tattoo parlor.
is a variable cost of operating the tattoo parlor.
is a fixed cost of operating the tattoo parlor.
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