An Asian manufacturer of running shoes pays its workers $275 to make 100 pairs an hour. Workers

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An Asian manufacturer of running shoes pays its workers $275 to make 100 pairs an hour. Workers use company-owned equipment that costs $300 an hour in forgone interest and economic depreciation. Materials cost $900.

Which costs are explicit costs? Which are implicit costs? With total revenue from the sale of 100 pairs of shoes of $1,650, calculate economic profit.

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Foundations Of Economics

ISBN: 9780134486819

8th Edition

Authors: Robin Bade, Michael Parkin

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