-Kendrick owns a record label in Compton, California. In 2019 he paid $400,000 in wages, $60,000 in equipment, and $100,000 for music rights. He could rent out the studio that he owns for $40,000 a year and work as a freelance producer and writer earning $100,000 a year. His total revenue was $650,000.

1.Calculate Kendrick's explicit costs.

2.Calculate Kendrick's implicit costs.

6.What is Kendrick's accounting profit?

7.What is Kendrick's economic profit?

8.Assume that Kendrick's benefits from owning a record label and working as a freelance producer/writer are the same. Based on this information, what would an economist likely suggest that Kendrick should do? Explain.

9.Suppose instead that Kendrick's revenue was $800,000, what would an economist suggest that he should do?