Aimee sells hand-embroidered dog apparel over the Internet.Her annual revenue is $128,000 per year,the explicit costs of her business are $42,000,and the opportunity costs of her business are $30,000.What is her economic profit?

Question

Quizplus · Accepted Answer

Economic profit is calculated by subtracting both explicit and opportunity costs from total revenue. Here, $128,000 - $42,000 - $30,000 = $56,000.

Aimee Sells Hand-Embroidered Dog Apparel Over the Internet