Raul owns and manages a men’s barbershop. He himself does no…
Raul owns and manages a men’s barbershop. He himself does not give haircuts. His total revenue last year was $400,000. Of that, his barbers got $210,000, and his rent was $6,000 per month. His other expenses totaled $1,000 per month. Raul could earn $55,000 per year cutting hair as a barber in someone else’s shop. His implicit costs last year were