Veruca sells therapeutic bath salts on the Internet.Her annual revenue is $52,000 per year,the explicit costs of her business are $14,000,and the opportunity costs of her business are $17,000 per year.What is her economic profit?

Question

Quizplus · Accepted Answer

Economic profit is calculated by subtracting both explicit and opportunity costs from total revenue. Therefore, Veruca's economic profit is $52,000 - $14,000 - $17,000 = $21,000.

Veruca Sells Therapeutic Bath Salts on the Internet