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
icon
Related questions
Question
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.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Production Function
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: Principles & Policy
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
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