The Cakery Bakery sells 200 muffins at a price of $2 per muffin. Its explicit costs for producing 200 muffins are $350. If the bakery is earning a normal rate of return, then its implicit costs must be A) $0. B) $50. C) $350. D) $400.

B

Explanation:

Explicit cost is the actual cost incurred in running a business. They include wages, cost of raw materials

Implicit cost is also known as opportunity cost.

Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.

The normal rate of return is when cost is equal to revenue. So, profit is zero.

Economic profit = Revenue -explicit cost - implicit cost

0 = (200 x $2) - $350 - implicit cost

implicit cost = $50

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

these are the four factors that influence enterpreneurship development

1. economic development

2. culture

3.technological development

4. education