If Rocco's Rib Joint took in $35,000 in revenue last week and had out-of-pocket expenses of $31,500:

Question

Quizplus · Accepted Answer

To determine whether Rocco earned any economic profit, we need to consider implicit costs in addition to out-of-pocket expenses. Implicit costs refer to the opportunity cost of using resources that do not involve any direct payment, such as the owner's time and effort that could have been used in alternative endeavors.

Without knowing the magnitude of implicit costs, we cannot definitively say whether Rocco earned any economic profit. Thus, option C is the best choice. Option A and D are too definitive without considering implicit costs, while option B is not accurate since firms do not need to put every dollar of profit back into the firm.

If Rocco's Rib Joint Took in $35,000 in Revenue Last