Asked by
Grechen Garcia
on Oct 25, 2024
Verified
You decide to quit your $60,000-per-year job as an information technology specialist and illustrate children's books.At the end of the first year of illustrating,you have earned $20,000.You also spent $5,000 for paint and paper.Your economic profit in the first year as an illustrator is:
A) $15,000.
B) $20,000.
C) -$40,000.
D) -$45,000.
Economic Profit
The surplus remaining after deducting both the explicit and implicit costs from total revenues, representing the financial gain that exceeds the total cost of resources used.
Information Technology
The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.
- Understand the consequences of opportunity costs in the realm of business decision-making and individual financial management.
- Gain insight into how implicit costs affect the economic profit margin.
Verified Answer
AA
Learning Objectives
- Understand the consequences of opportunity costs in the realm of business decision-making and individual financial management.
- Gain insight into how implicit costs affect the economic profit margin.