Caculate the explicit cost of the firm

Reference no: EM13243404

A firm pays in cash $250000 inwages, $55430 in interest on borrowed money capital and $74320 forthe yearly rental of its factory building. If the entrepreneurworked for somebody else as a manager, he would earn at most $44500per year and if he lent out his money capital to somebody else in asimilarly risky business, he would at most receive $16600 per year.Keeping in view the above information:

(A)Calculate:

a) The explicitcost of the firm.

b) The implicitcost of the firm.

c) The totalcost of the firm.

(B) If theentrepreneur received $495680 from selling his years output, thencalculate his total profit.

Reference no: EM13243404

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