Reference no: EM132091698

Paul quit his public servant employment to start a convenience store (C-store). • Paul o earned $50,000 annually as a public servant. o rented the retail space which he owned while a public servant for $24,000 annually o set up the C-Store in the retail space which he owned. In the first year of operating the C-Store, Paul • paid himself a salary of $40,000. • had other expenses totalling $25,000. Q1. Paul's accounting cost in the first year of operating the C-Store was a) $50,000; b) $40,000; c) $25,000; d) $65,000. Q2. Paul's explicit economic cost in the first year of operating the C-Store was a) $50,000; b) $40,000; c) $25,000; d) $65,000. Q3. Paul's implicit economic cost in the first year of operating the C-Store was a) $24,000; b) $34,000; c) $40,000; d) None of these answers. Q4. Paul's total economic cost in the first year of operating the C-Store was a) $24,000; b) $50,000; c) $64,000; d) $98,000; e) None of these answers