Lynn owns a small ballet supply store.He currently spends $80,000 per year on inventory, rent, and labor, and collects $120,000 in revenue.He could still be earning $20,000 as a dancer.His economic profit is

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Lynn's economic profit is calculated by subtracting both his explicit costs ($80,000) and his opportunity cost of not working as a dancer ($20,000) from his revenue ($120,000). This results in an economic profit of $20,000 ($120,000 - $80,000 - $20,000).

Lynn Owns a Small Ballet Supply Store