Question 7
1 pts
Suppose Fred quits his $90,000 per year job and withdraws $100,000 from a bank savings account (yielding 2% interest per year) to start his firm, FCF Inc. If FCF annually spends $50,000 on capital equipment, $300,000 on employee wages, $50,000 on supplies, $60,000 on rented office space, and $40,000 on utilities, then FCF's annual implicit costs are \_\_\_\_\_\_ and its annual explicit costs are \_\_\_\_\_\_
$190,000; $502,000.
$192,000; $500,000.
$90,000; $600,000.
$92,000; $500,000.
$90,000; $900,000
$92,000; $600,000.