Maria's Pizza Shop incurs $800,000 per year in explicit costs and $120,000 in implicit costs. The shop has $1 million in revenues and has $2 million in net worth. Based on this information, what is the economic profit for Maria's Pizza Shop? A. $200,000 B. $80,000 C. $400,000 D. $3 million
Maria's Pizza Shop incurs $800,000 per year in explicit costs and $120,000 in implicit costs. The shop has $1 million in revenues and has $2 million in net worth. Based on this information, what is the economic profit for Maria's Pizza Shop? A. $200,000 B. $80,000 C. $400,000 D. $3 million
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.6IP
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![Maria's Pizza Shop incurs $800,000 per year in explicit costs and $120,000 in implicit costs. The shop has $1 million in
revenues and has $2 million in net worth. Based on this information, what is the economic profit for Maria's Pizza Shop?
A.
$200,000
B.
$80,000
C.
$400,000
D.
$3 million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F235288b6-666f-42f5-a6ad-b9c9cd11c7a1%2F3f4c34a6-43b8-4b58-a145-90b2abba0fe7%2Frumbhko_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Maria's Pizza Shop incurs $800,000 per year in explicit costs and $120,000 in implicit costs. The shop has $1 million in
revenues and has $2 million in net worth. Based on this information, what is the economic profit for Maria's Pizza Shop?
A.
$200,000
B.
$80,000
C.
$400,000
D.
$3 million
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