Kamala left her job as a public defender where she earned $$200,000$ per year. She calculates her entrepreneurial talent or forgone entrepreneurial income to be $$20,000$ a year. To open her own law firm, she cashed in

$$500,000$ in bonds that earned $5$ percent interest annually to buy out an existing firm. In the first year, the firm had $10,000$ billable hours and charged $$200$ per hour. Of the $$200$ per hour, $$120$ goes for employee

wages and benefits, supplies, legal and court fees, marketing, and rent on a building.

The implicit costs of Kamala's firm in the first year were

Multiple Choice

$$800,000.$

$$1,445,000.$

$$1,200,000.$

$$245,000.$