Depreciation of capital equipmentAdditional wages the dentist owner could have
earned in her next best alternativeRisk premium of 4% on the owner’s capital of $1
000 000a. What are the explicit costs for this firm?
b. What are the implicit costs for this firm?
c. What are the accounting profits for this firm?
d. What are the economic profits for this firm?
12. Wacky Wintersports Inc. can produce snowboards according to
the following schedule.
Units of
Labour
(per week)Number of
Snowboards (per
week)Average
ProductMarginal
Product