Firm A is in food industry, and firm A makes total revenue of $2000 this month. In order to support the production, the owner had to give up his part-time job, from which he was paid $500/month. The total explicit costs to support this company is $850/month. Please calculate the Economic Profit of firm A. O a 1150 O b. 1500 O c. 650 O d. 2000 O e 1350
Firm A is in food industry, and firm A makes total revenue of $2000 this month. In order to support the production, the owner had to give up his part-time job, from which he was paid $500/month. The total explicit costs to support this company is $850/month. Please calculate the Economic Profit of firm A. O a 1150 O b. 1500 O c. 650 O d. 2000 O e 1350
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Firm A is in food industry, and firm A makes total revenue of $2000 this month. In order to support
the production, the owner had to give up his part-time job, from which he was paid $500/month. The
total explicit costs to support this company is $850/month. Please calculate the Economic Profit of
firm A.
O a. 1150
O b. 1500
O c. 650
O d. 2000
O e
1350](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F78dd761d-eb57-4d25-9051-b86a2052fce3%2F96cd57b3-6bb2-4cef-9191-fdc075de5630%2Fih9alld_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Firm A is in food industry, and firm A makes total revenue of $2000 this month. In order to support
the production, the owner had to give up his part-time job, from which he was paid $500/month. The
total explicit costs to support this company is $850/month. Please calculate the Economic Profit of
firm A.
O a. 1150
O b. 1500
O c. 650
O d. 2000
O e
1350
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