Tsubasa Kajitani can earn $4 million per year as a professional golfer. Suppose she quits golf and opens a sushi restaurant. Rent on the restaurant is$175,000 per year. Her payroll is $200,000, she has utility bills of $30,000 per year and her food and other materials costs is $450,000 per year.Tsubasa's sushi restaurant generates $900,000 in revenue its first year. Tsubasa's economic profit is Tsubasa Kajitani can earn $4 million per year as a professional golfer. Suppose she quits golf and opens a sushi restaurant. Rent on the restaurant is$175,000 per year. Her payroll is $200,000, she has utility bills of $30,000 per year and her food and other materials costs is $450,000 per year.Tsubasa's sushi restaurant generates $900,000 in revenue its first year. Tsubasa's economic profit is$45,000-$25,000$0-$3,955,000

While calculating economic profit opportunity cost and explicit costs are deducted from Revenue.

Answered: Tsubasa Kajitani can earn $4 million…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Tsubasa Kajitani can earn $4 million per year as a professional golfer. Suppose she quits golf and opens a sushi restaurant. Rent on the restaurant is
$175,000 per year. Her payroll is $200,000, she has utility bills of $30,000 per year and her food and other materials costs is $450,000 per year.
Tsubasa's sushi restaurant generates $900,000 in revenue its first year. Tsubasa's economic profit is

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