Explicit Cost

Maria runs a bakery. Last month, she paid the following:

What were Maria’s explicit costs last month?

Jamal opens a food truck this year. To get started, he made the following moves:

• Quit his $50,000/year office job to run the truck full-time
• Paid $8,000 for a year of permits, insurance, and licensing
• Paid $15,000 for ingredients over the year
• Paid $35,000 to rent the truck for the year
• Withdrew $10,000 from his personal savings (which was earning 4% interest annually) to fund startup

What were Jamal’s explicit costs this year?

Priya is deciding what to do with her summer. She considered three options:

• Option A: Take a paid internship at a marketing firm for $6,000
• Option B: Backpack through Europe — flights ($1,200), hostels ($2,500), food ($1,800), travel insurance ($300)
• Option C: Stay home and freelance from her apartment — software subscriptions ($500), home office supplies ($200)

Priya chose Option B. What were her explicit costs for the summer?

Devin runs a graphic design business out of an office space he owns. Select ALL of the following that are explicit costs for his business.