Yakov lives in Donver and runs a business that sells boats. In an average yoar, he receives $731,000 from selling boats. OF this sales revenue, ive must pay the manufactures a wholesale cost of $431,000; he also pays mages and utiley bills betaling $250,000. He sins his showbor; Y he chosses la rent it oul, he will rockive $8,000 in rent per year. Assuma that the value of this showedom does not depescute tear the year. Alao, if Vabor does not operase this boat business, he can work as an accountant and rective an annual salary of $30,000 with no additional monetary costs. Mo other costs are incured in runng the boat busine.
Study tools
Cus Suctoss Tis
Cake Suctess Tips
Halp
Identify each of Yakor's costs in the following table as either an impliat cost or an exphait cost of salling bouts.
Implicit Cost
Explicit Cost
The mages and utilty bits that Yakov pays
The nholesale cost for the boats that Takow pays the manufacturer
The rental income Yakow cbuld receive if he chose to rent out his shöwrobes
The salary Yakow could wam if he worked as an accountant
SIGN OUT
Compete the folomo table by determao Yakov's accountro and acanome probt of noi boat busersis.
Profit (Daltars)
Accounting Profit
Economi Polil
Alteratvaly, the icenome proft he wosld sarn as an aceoentant wost bo
If vakey s poel is to masimue hri economic proli, te
True or fabe, Yakos is carrig à normal profit because has profe o positive.
• Fibe
