Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon, Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per year- he used the borrowed money to meet current various business-related expenses. In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and incurred another $15,000 on hairdressing supplies. Based on this information, what is the amount of her explicit cost?

a. $45,000

b. $45,500

c. $47,000

d. $87,000 Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon, Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per year- he used the borrowed money to meet current various business-related expenses. In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and incurred another $15,000 on hairdressing supplies. Based on this information, what is the amount of her implicit cost?

a. $80,000

b. $70,000

c. $42,000

d. $41, 500 Refer to figure 3-3 Practice Quiz 3

The consumer can afford consumption bundles

a. r, s, t and u

b. r, s, v, and u

c. s, v, and u only

d. s, v, t, and u