Last year, you spent $10,000 researching the market to decide whether to begin a new business. You rent a space for $40,000 a year, and pay an employee $50,000 a year with a 1 year contract.

If you could earn $100,000 in another occupation, and you sell 5000 units which cost $2 to produce, which of the following correctly characterizes your costs?

Which one is the correct answer and please explain why?

a. Your total economic costs (explicit and implicit) are $200,000

b. Your total economic costs (explicit and implicit) are $210,000

c. Your explicit variable costs are $200,000

d. Your explicit fixed costs are $100,000.