Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[MUST SHOW WORK] , you start a website design business. You use $6,000 of your own money to pay for deposits which you expect to

[MUST SHOW WORK] , you start a website design business. You use $6,000 of your own money to pay for deposits which you expect to get back. After one year, you have generated $24,000 in revenue and incurred $7,000 in financial costs. Had you worked on an hourly job instead, you would have earned $33,000. Had you invested the $6.000 in your friend's business, which was very successful, you would have recieved $7,000 back with earnings of $1,000. Your economic profit for this first year is:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone

6th Canadian Edition

321675606, 978-0321675606

Students also viewed these Economics questions