Question 35 1 points Save and The table below shows a business firm's list of expenditures....

Question

Question

business economics

Answer 1

Answer #1

Annual Accounting cost is the explicit costs excluding the opportunity costs.

Annual labor wages = 12*4000 = 48,000

Annual electricity charges = 12*2000 = 24,000

Annual rent of land = 1500*12 = 18,000

Annual rent paid for capital = 12*3,000 = 36,000

Therefore, toatl annual accounting cost = 8000+48,000+24,000+18,000+36,000 = $134,000. Hence, B is correct.

Answer 2

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