Answer:
$265,000
Step-by-step explanation:
Economic cost is the addition of implicit cost and explicit cost. That is,
Economic cost = Explicit cost + Implicit cost .............. (1)
Explicit costs are payments that are actually made. It is also known as out-of-pocket costs.
Implicit cost is an implied cost because they are not actually paid. Implicit cost is a loss of income, but a loss of profit. An example is an opportunity cost.
Since we are not given implicit cost in the question, equation (1) is estimated as follows:
Economic cost = $265,000 + 0 = $265,000
Therefore, William's economic cost is equal to his explicit cost of $265,000.