Posted: March 6th, 2017

A woman managing a photocopying establishment for $25,000 per year decides to open her own duplicating place.

A woman managing a photocopying establishment for $25,000 per year decides to open her own duplicating place. Her revenue during the first year of operation is $120,000 and her expensers are as follows:
Salaries to hire help ,000
Supplies 15,000
Rent 10,000
Utilites 1,000
Interst on bank loan 10,000
Calculate a. the explicit costs, b. the implicit costs, c. the busines profit, d the economic profit, and e. the normal return on investment in this business.