For each one of the costs below, explain whether the resource cost is explicit or implicit, and give the annual opportunity cost for each one.
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For each one of the costs below, explain whether the resource cost is explicit or implicit, and give the annual opportunity cost for each one. Assume the owner of the business can invest money and earn 10 percent annually.
a. A computer server to run the firm’s network is leased for $6,000 per year.
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