Sonya's previous income = $25,000 a year Return of other entrepreneurs in greeting card industry = $14,000 a year Sonya's cost of cards = $10,000 from manufacturers Sonya's revenue = $58,000 Rental cost = $5,000 Cost of utilities = $1,000 Cost of cash register purchased from savings account = $2000 Savings account interest rate = 3% Sonya was offered $1,600 for her cash register at the end of the year. Determine explicit costs, implicit costs and economic profit for the year.

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Chapter 14, Problem 2IAPA

To determine

Sonya's previous income = $25,000 a year

Return of other entrepreneurs in greeting card industry = $14,000 a year

Sonya's cost of cards = $10,000 from manufacturers

Sonya's revenue = $58,000

Rental cost = $5,000

Cost of utilities = $1,000

Cost of cash register purchased from savings account = $2000

Savings account interest rate = 3%

Sonya was offered $1,600 for her cash register at the end of the year.

Determine explicit costs, implicit costs and economic profit for the year.

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