Question

Jin is opening his business. He financed the business by withdrawing money from her personal savings account. When he closed the account, the bank representative mentioned that he would have earned $1,000 in interest next year. If Jin hadn't opened his own business, he would have earned a salary of $80,000. In his first year, Jin's revenues were $95,000, and he spent $10,000 on materials and supplies. Which of the following statements is correct? a. Jin's accounting profits is $95,000. b. Jin's total explicit costs are $1,000 c. Jin's total implicit costs are $10,000. d. Jin's economic profit is $4,000.

          Jin is opening his business. He financed the business by withdrawing money from her personal savings account. When he closed the account, the bank representative mentioned that he would have earned $1,000 in interest next year. If Jin hadn't opened his own business, he would have earned a salary of $80,000. In his first year, Jin's revenues were $95,000, and he spent $10,000 on materials and supplies. Which of the following statements is correct?
a. Jin's accounting profits is $95,000.
b. Jin's total explicit costs are $1,000
c. Jin's total implicit costs are $10,000.
d. Jin's economic profit is $4,000.

Jin is opening his business. He financed the business by withdrawing money from her personal savings account. When he closed the account, the bank representative mentioned that he would have earned 1,000 in interest next year. If Jin hadn't opened his own business, he would have earned a salary of80,000. In his first year, Jin's revenues were 95,000, and he spent10,000 on materials and supplies. Which of the following statements is correct?
a. Jin's accounting profits is 95,000.
b. Jin's total explicit costs are1,000
c. Jin's total implicit costs are 10,000.
d. Jin's economic profit is4,000.

Added by Matthew F.

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