Question

Assume that you own a sole proprietorship. Your first-year earnings were $75,000, and your explicit costs were $55,000. If you could have worked at another establishment and earned $25,000, which of the following is true? a. Your firm earned an economic profit of $20,000 b. Your firm's total implicit costs were $80,000 c. Your firm sustained an economic loss of $5,000 d. Your firm's total costs are $100,000

Name: assume that you own a sole proprietorship your first year earnings were 75000 and your explicit costs were 55000 if you could have worked at another establishment and earned 25000 which of t 37638
Uploaded: 2023-09-07T09:02:01-08:00
Duration: 2 min 6 s
Channel: Oluwadamilola Ameobi
Description: assume that you own a sole proprietorship your first year earnings were 75000 and your explicit costs were 55000 if you could have worked at another establishment and earned 25000 which of t 37638

          Assume that you own a sole proprietorship. Your first-year earnings were $75,000, and your explicit costs were $55,000. If you could have worked at another establishment and earned $25,000, which of the following is true?
a. Your firm earned an economic profit of $20,000
b. Your firm's total implicit costs were $80,000
c. Your firm sustained an economic loss of $5,000
d. Your firm's total costs are $100,000

Added by Monica L.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Oluwadamilola Ameobi

09/07/2023

Step 1

Step 1: Identify the given information: - First-year earnings (revenue): $75,000 - Explicit costs: $55,000 - Opportunity cost of working at another establishment: $25,000 Show more…

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Assume that you own a sole proprietorship. Your first-year earnings were $75,000, and your explicit costs were $55,000. If you could have worked at another establishment and earned $25,000, which of the following is true? a. Your firm earned an economic profit of $20,000 b. Your firm's total implicit costs were $80,000 c. Your firm sustained an economic loss of $5,000 d. Your firm's total costs are $100,000