Jake sells Star Wars memorabilia on eBay.His annual revenue is $42,000 per year, the explicit costs of his business are $10,000, and the opportunity costs of his business are $18,000 per year.What is his economic profit?

Question

Quizplus · Accepted Answer

Economic profit is calculated by subtracting both explicit and opportunity costs from total revenue. So, $42,000 - $10,000 - $18,000 = $14,000.

Jake Sells Star Wars Memorabilia on EBay