Q326
Suppose the total cost of producing commodity X is Rs.125000. Out of this cost, implicit cost is Rs.35000 and normal profit is Rs.25000. What will be the explicit cost of commodity X?
A.
Rs.90000
B.
Rs.65000
AnswerC.
Rs.60000
D.
Rs.100000
Answer: Option B
Solution
Answer: Option B
Solution:
125000-25000-35000 = 65000 = explicit cost.
Total cost = implicit cost + explicit cost.