(SOLVED)Question Answered step-by-step Question 1(1 point) Suppose Adam is deciding what mode of... Question 1 (1 point) Suppose Adam is deciding what mode of transportation to take to get to work in the morning. If Adam decides to take a taxi,

Suppose Adam is deciding what mode of transportation to take to get to work in the morning. If Adam decides to take a taxi, which of the following is an explicit cost of his decision? Question 1 options: The loss of exercise he gets when he walks to work (assume exercise gives him positive benefit) The $2.50 it costs to ride the subway. The value he gets from commuting with his wife who also takes the subway None of the above are explicit costs Question 2 (1 point) Suppose a firm has annual revenue of $600,000 from producing cars. Alternatively, the firm could produce only the engines and earn revenue equal to $100,000. Assume that the firm's annual raw materials costs are equal to $400,000 and that the rent it pays for its production facilities is equal to $50,000. Then, the firm's economic profit is equal to: Question 2 options: $200,000 $150,000 $100,000 $50,000 Question 3 (1 point)