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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Answer 1

Question

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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Answer 2

Question

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.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

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.

Expert Solution & Answer

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Answer 4

Question

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.

Expert Solution & Answer

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Answer 5

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.

Answer 6

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.

Answer 7

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.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 14 - Prob. 1SPPA Ch. 14 - Prob. 2SPPA Ch. 14 - Prob. 3SPPA Ch. 14 - Prob. 4SPPA Ch. 14 - Prob. 5SPPA Ch. 14 - Prob. 6SPPA Ch. 14 - Prob. 7SPPA Ch. 14 - Prob. 8SPPA Ch. 14 - Prob. 9SPPA Ch. 14 - Prob. 1IAPA

Solution Summary: The author analyzes Sonya's economic profit for the year by determining explicit costs, implicit costs and out of pocket costs.

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Chapter 14 Solutions