William, a journeyman carpenter with an associate's degree in civil engineering, had been making $33 comma 475 per year as a carpenter for a building contractor. As a self-employed subcontractor, William incurred explicit costs of $265 comma 000 per year. What is William's economic cost? His economic cost is $ nothing per year. (round your answer to the nearest penny)
Idont have idea about ir
A- the queen isn’t specified which one so its to capitalized same with nuclear reactors and atomic power plant (aka they aren’t proper nouns)
$265,000
Explanation:
Economic cost is the addition of implicit cost and explicit cost. That is,
Economic cost = Explicit cost + Implicit cost (1)
Explicit costs are payments that are actually made. It is also known as out-of-pocket costs.
Implicit cost is an implied cost because they are not actually paid. Implicit cost is a loss of income, but a loss of profit. An example is an opportunity cost.
Since we are not given implicit cost in the question, equation (1) is estimated as follows:
Economic cost = $265,000 + 0 = $265,000
Therefore, William's economic cost is equal to his explicit cost of $265,000.