Question

Angus works as a dairy farmer and loves his work. However, because the dairy business has not been doing well lately, Angus is considering changing careers. He could work as a technician at the local dairy plant and earn $27,000/year. Angus decides to make a list of the costs of staying in business as a farmer and asks you for help. Please classify each of Angus's costs as explicit or implicit.

Answer 1

Angus's costs as explicit or implicit are given below

Step-by-step explanation:

solution

Explicit cost

Explicit cost is required the outlay of the money and explicit cost involvement is following

(a) wage they pay to his hired hand

(b) feed they buys for his cows

(c) gas they using for their farm truck

(4) cost of veterinary care

and

Implicit cost is measure by value of benefit foregone and Implicit cost involvement is following

(a) it take him to milk of all cow

(b) $27000 per year salary is receive from work at dairy