Refer to the data. Creamy Crisp's implicit costs are:    A. $150,000   B. $94,000   C. $136,000   D. $156,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter13: best-practice Tactics: Game Theory
Section: Chapter Questions
Problem 14E
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  1. The following is cost information for the Creamy Crisp Donut Company:

    Entrepreneur's potential earnings as a salaried worker = $50,000
    Annual lease on building = $22,000
    Annual revenue from operations = $380,000
    Payments to workers = $120,000
    Utilities (electricity, water, disposal) costs = $8,000
    Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
    Entrepreneur's forgone interest on personal funds used to finance the business = $6,000

    Refer to the data. Creamy Crisp's implicit costs are: 

      A.

    $150,000

      B.

    $94,000

      C.

    $136,000

      D.

    $156,000

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