-Henry decides to quit his job (earning $50,000 per year) ,take his $60,000 in savings,and open a dry cleaning store.Figure 8-1 shows the revenues and expenditures for his first year of operation.If Henry could have earned $3,000 in interest on the money used to open the store,his economic profit would have been

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Henry's economic profit is calculated by subtracting both explicit and implicit costs from total revenue. His implicit costs include the forgone salary ($50,000) and forgone interest ($3,000), totaling $53,000. If his total revenue minus explicit costs is less than $53,000, his economic profit is negative.

-Henry Decides to Quit His Job (Earning $50,000 Per Year),take