MEB tutorial assignment – 1

1) Explicit costs
A. Office rental + legal secretary + office equipment + supplies,
electricity, telephone
- 10,000 + 20,000 + 15,000 + 5000
- Rs 50,000

b. Accounting cost
- Revenue – explicit cost
= 1,00,000 – 50,000
= 50,000
Economic cost = Implicit cost + Explicit cost
= 60,000 + 50,000
= 1,10,000
C. The lawyer should avoid from starting his own practice because he is
currently in a loss of funds and would be in the loss of 10,000 Rs per
month. Not only this but he would have started the business on the
terms of negative funds which may lead to further future complications.
- Total revenue – explicit cost – implicit cost
= 1,00,000 – 50,000 – 60,000
= -10,000 Rs (Incurring a loss)

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Name: Nishanth urs Reg no: 064
Class: BBA SEM 1 Sec –
C