Meera left her job as a public defender where she earned $$206,000$ per year. She calculates her entrepreneurial talent or forgone entrepreneurial income to be $$26,000$ a year. To open her own law firm, she cashed in $$506,000$ in bonds that earned $5$ percent interest annually to buy out an existing firm. In the first year, the firm had $16,000$ billable hours and charged $$260$ per hour. Of the $$260$ per hour, $$135$ goes for employee wages and benefits, supplies, legal and court fees, marketing, and rent on a building.

The explicit costs of Meera's firm in the first year were

Multiple Choice

$$2,160,000.$

$$815,000.$

$$1,460,000.$

$$2,000,000.$

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$2$ of $30$

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