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You decide to rent a cabin for the summer to sell taffy. Below are the costs and revenue you consider. . Rent for cabin: $15,000
You decide to rent a cabin for the summer to sell taffy. Below are the costs and revenue you consider. . Rent for cabin: $15,000 Purchase Equipment: $10,000 . PFD CD Interest (at 10%) you would have earned if you had not cashed out your CD: $1,000 . ingredients (sugar, flavorings, etc.): $5,000 . Foregone wages if you had decided to work for The Fire Service for the summer: $6,000 . Wages to your employee to work at the cabin: $4,000 . Total Sales: $40,000 Total Revenue: ["$36,000", "$100,000", "$40,000", "$6,000"] Explicit Costs: ["$36,000", "$40,000", "$34,000", "$10,000"] Implicit Costs: [ $7,000,, "$76,000", "$36,000", "$6,000"] Accounting Profit: ["$40,000", "$6,000", "$76,000", "$36,000"] Economic Profit: ["$34,000", "$6,000", "$40,000", "-$1,000"] Economists claim that the accounting measure does not fully capture all the ["marginal", "the", "opportunity", "profits"] costs of production
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