1 Consider the following information about a business Rodrig

1. Consider the following information about a business Rodriguez opened last year: price- S5; quantity sold 15,233; implicit cost $18,000; explicit cost $33,000. What was Rodriguez\'s accounting profit and economic profit? Show your work. (two points) ??

Solution

Accounting Profits: Revenue (15233 Units @ 5) 76165 Less: Explicit Cost 33000 Accounting Profits: 43165 Economic profits: Accounting profits: 43165 Less: Implicit cost 18000 Economic profits: 25165