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A woman managing a photocopying establishment for $25,000 per year decides to open her own duplicating shop. Her revenue during the first year of operation
A woman managing a photocopying establishment for $25,000 per year decides to open her own duplicating shop. Her revenue during the first year of operation is $120,000, and her expenses are as follows:
Employees salaries $45,000
Supplies $15,000
Rent $10,000
Utilities $ 1,000
Interest on bank loan$10,000
Calculate
i.the explicit and implicit costs
ii. the business profits and economic profits
iii. the normal return on investment for this business.
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