Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest. In the first year, Carson sold 20 000 coffees at a price of $2 each, and incurred costs of $18 000 which involved outlays of money. What was Carson's economic profit in the first year?

Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest. In the first year, Carson sold 20 000 coffees at a price of $2 each, and incurred costs of $18 000 which involved outlays of money. What was Carson's economic profit in the first year?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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