[Economics] Please help! Joe is the owner-operator of Joe's Haircuts Unlimited. Last year he earned $100,000 i

Question

Joe is the owner-operator of Joe's Haircuts Unlimited. Last year he earned $100,000 in total revenues and paid $65,000 to his employees and suppliers. During the course of the year, he received three offers to work for other barbers, with the highest offer being $40,000 per year. What are Joe's implicit costs?

A. $105,000

B. $25,000

C. $65,000

D. $40,000

E. $60,000

Answer 1

D. $40,000

http://en.wikipedia.org/wiki/Implicit_co...