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During a year of operation, a firm collects $200,000 in revenue and spends $100,000 on raw materials, labor expense, utilities, and rent. The owners of
During a year of operation, a firm collects $200,000 in revenue and spends $100,000 on raw materials, labor expense, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and earning a 4 percent annual rate of return.
The implicit costs of the firm are $______ thousand.
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