Fay runs a hot dog cart at the sports stadium. Fay has no skills, no job experience, and no alternative employment. Entrepreneurs in the hot dog cart business earn $12,000 a year. Fay pays the rent of $2,000 a year, and her total revenue is $15,000 a year. She borrowed $1,000 at 10 percent a year to buy equipment. At the end of one year, Fay was offered $600 for her business and all its equipment. Fay's explicit costs are $2,100. Fay's implicit costs are $ 12,400. Fay's economic profit in the first year is 500 dollars.
Fay runs a hot dog cart at the sports stadium. Fay has no skills, no job experience, and no alternative employment. Entrepreneurs in the hot dog cart business earn $12,000 a year. Fay pays the rent of $2,000 a year, and her total revenue is $15,000 a year. She borrowed $1,000 at 10 percent a year to buy equipment. At the end of one year, Fay was offered $600 for her business and all its equipment. Fay's explicit costs are $2,100. Fay's implicit costs are $ 12,400. Fay's economic profit in the first year is 500 dollars.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Fay runs a hot dog cart at the sports stadium. Fay has no skills, no job experience, and no alternative employment.
Entrepreneurs in the hot dog cart business earn $12,000 a year.
Fay pays the rent of $2,000 a year, and her total revenue is $15,000 a year.
She borrowed $1,000 at 10 percent a year to buy equipment.
At the end of one year, Fay was offered $600 for her business and all its equipment.
Fay's explicit costs are $2,100.
Fay's implicit costs are $ 12,400.
Fay's economic profit in the first year is 500 dollars.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ffee599-917a-41d4-a8a0-7aea7bd9498b%2F63d48113-efdd-4b17-ae5f-49b224605724%2Fug941yv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Fay runs a hot dog cart at the sports stadium. Fay has no skills, no job experience, and no alternative employment.
Entrepreneurs in the hot dog cart business earn $12,000 a year.
Fay pays the rent of $2,000 a year, and her total revenue is $15,000 a year.
She borrowed $1,000 at 10 percent a year to buy equipment.
At the end of one year, Fay was offered $600 for her business and all its equipment.
Fay's explicit costs are $2,100.
Fay's implicit costs are $ 12,400.
Fay's economic profit in the first year is 500 dollars.
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