Question
Janelle owns her own dog daycare. She gave up a job as a nurse where she earned $50,000. To run her dog daycare, she rents
Janelle owns her own dog daycare. She gave up a job as a nurse where she earned $50,000. To run her dog daycare, she rents a building and yard for $20,000 a year, buys dog food and treats costing $10,000 a year, and has other miscellaneous expenses costing $6,500. She earns $100,000 in revenue.What are Janelle's implicit costs, explicit costs and economic profit?
A)implicit costs = $86,500 ; Explicit costs = $50,000 ; Economic profit = - $36,500
B)Implicit costs = $50,000 ; Explicit costs = $36,500 ; Economic profit = $13,500
C)Implicit costs = $36,500; Explicit costs = $86,500 ; Economic profit = -$23,000
D)Implicit costs = $36,500 ; Explicit costs = $50,000 ; Economic profit = $13,500
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