When Jason Bachelor graduated from pharmacy school, his father gave him a $500,000 building to start his own pharmacy. Recently, Jason was boasting to some of his fellow pharmacists that his revenues were typically $228,000 per year, while his operating costs (utilities, labor expense, and supplies) amounted to only $115,000 per year. Buildings similar to Jason's rent for $41,000 per year. Alternatively, Jason could sell the building and earn 8.3% annually on the proceeds. If Jason was working as a pharmacist at Walgreens or CVS, he would earn $96,000 per year. 

Jason Bachelor - Question #1

How much are Jason's explicit costs per year? (2)

Jason Bachelor - Question #2

How much are Jason's implicit costs per year? (2)

Jason Bachelor - Question #3

What is Jason's accounting profit (loss) per year? (2)

Jason Bachelor - Question #4

What is Jason's economic profit (loss) per year? (2)

Jason Bachelor - Question #5

Based on the scenario described above, what advice would you give Jason? (2)

Answer rating: 100% (QA)

Lets break down the information provided to answer each question 1 Jasons explicit costs per year in... View the full answer