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Sonya used to earn $50,000 a year, selling real estate, but she now sells art supplies The return to entrepreneurship in the art supplies industry is $12,000 a year Over the year, Sonya bought $10,000 worth of supplies from manufacturers of art supplies and sold these supplies for $47,000. Sonya rents a shop for $10,000 a year and spends $1,500 on utilities and office expenses. Sonya owns a cash register, which she bought for $2,500 with funds from her savings account. The bank pays 2 percent a year on savings accounts. At the end of the year, Sonya was offered $1,400 for her cash register. What are Sonya's explicit costs, implicit costs, and economic profit for the year?

Sonya used to earn $50,000 a year, selling real estate, but she now sells art supplies The return to entrepreneurship in the art supplies industry is $12,000 a year Over the year, Sonya bought $10,000 worth of supplies from manufacturers of art supplies and sold these supplies for $47,000. Sonya rents a shop for $10,000 a year and spends $1,500 on utilities and office expenses. Sonya owns a cash register, which she bought for $2,500 with funds from her savings account. The bank pays 2 percent a year on savings accounts. At the end of the year, Sonya was offered $1,400 for her cash register. What are Sonya's explicit costs, implicit costs, and economic profit for the year?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Sonya used to earn $50,000 a year, selling real estate, but she now sells art supplies. The return to entrepreneurship in the art supplies industry is $12,000 a year. Over the year, Sonya bought $10,000 worth of supplies from manufacturers of art supplies and sold these supplies for $47,000 Sonya rents a shop for $10,000 a year and spends $1,500 on utilities and office expenses. Sonya owns a cash register, which she bought for $2,500 with funds from her savings account. The bank pays 2 percent a year on savings accounts. At the end of the year, Sonya was offered $1,400 for her cash register. What are Sonya's explicit costs, implicit costs, and economic profit for the year?
Transcribed Image Text:Sonya used to earn $50,000 a year, selling real estate, but she now sells art supplies. The return to entrepreneurship in the art supplies industry is $12,000 a year. Over the year, Sonya bought $10,000 worth of supplies from manufacturers of art supplies and sold these supplies for $47,000 Sonya rents a shop for $10,000 a year and spends $1,500 on utilities and office expenses. Sonya owns a cash register, which she bought for $2,500 with funds from her savings account. The bank pays 2 percent a year on savings accounts. At the end of the year, Sonya was offered $1,400 for her cash register. What are Sonya's explicit costs, implicit costs, and economic profit for the year?
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