Rodriguez operates a variety store that provides an annual revenue of $550,000. Each year, he pays $25,000 in rent for the store, $20,000 in business taxes, and $400,000 on products to sell. He estimates he could put the $100,000 he has invested in the store into his friend's restaurant business instead and earn an annual 20% profit on his funds. He also estimates that he and his family could earn a total annual wage of $90,000 if they worked somewhere other than the store. Include a minus sign (-) in front of any negative values entered as a solution below. a. The total explicit costs of running the store are $ The total implicit costs of running the store are $ b. The accounting profit of the variety store is $ The economic profit of the variety store is $
Rodriguez operates a variety store that provides an annual revenue of $550,000. Each year, he pays $25,000 in rent for the store, $20,000 in business taxes, and $400,000 on products to sell. He estimates he could put the $100,000 he has invested in the store into his friend's restaurant business instead and earn an annual 20% profit on his funds. He also estimates that he and his family could earn a total annual wage of $90,000 if they worked somewhere other than the store. Include a minus sign (-) in front of any negative values entered as a solution below. a. The total explicit costs of running the store are $ The total implicit costs of running the store are $ b. The accounting profit of the variety store is $ The economic profit of the variety store is $
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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![Rodriguez operates a variety store that provides an annual revenue of $550,000. Each year, he pays $25,000 in rent for the store,
$20,000 in business taxes, and $400,000 on products to sell. He estimates he could put the $100,000 he has invested in the store
into his friend's restaurant business instead and earn an annual 20% profit on his funds. He also estimates that he and his family could
earn a total annual wage of $90,000 if they worked somewhere other than the store. Include a minus sign (-) in front of any negative values
entered as a solution below.
a. The total explicit costs of running the store are $
The total implicit costs of running the store are $
b. The accounting profit of the kariety
store is $
The economic profit of the variety store is $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F12bcc9be-8642-4b60-8799-ce2e2245448a%2F531442b3-94f2-40ed-8cd2-0c70a02ce237%2F3budzyq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Rodriguez operates a variety store that provides an annual revenue of $550,000. Each year, he pays $25,000 in rent for the store,
$20,000 in business taxes, and $400,000 on products to sell. He estimates he could put the $100,000 he has invested in the store
into his friend's restaurant business instead and earn an annual 20% profit on his funds. He also estimates that he and his family could
earn a total annual wage of $90,000 if they worked somewhere other than the store. Include a minus sign (-) in front of any negative values
entered as a solution below.
a. The total explicit costs of running the store are $
The total implicit costs of running the store are $
b. The accounting profit of the kariety
store is $
The economic profit of the variety store is $
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