Suppose that a local floral shop has explicit costs of $200 000 per year and implicit costs of $50 000 per year.If the store earned an economic profit of $50 000 last year,the store's accounting profit equalled:

Question

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Economic profit is calculated as accounting profit minus implicit costs. Given the economic profit is $50,000 and implicit costs are $50,000, the accounting profit must be $100,000.

Suppose That a Local Floral Shop Has Explicit Costs of $200