Rodriguez operates a variety store that provides an annual revenue of $550,000. Each year, he pays $25,000 in rent for the store, $20,000 in business taxes, and $400,000 on products to sell. He estimates he could put the $100,000 he has invested in the store into his friend's restaurant business instead and earn an annual 20% profit on his funds. He also estimates that he and his family could earn a total annual wage of $90,000 if they worked somewhere other than the store. Include a minus sign (-) in front of any negative values entered as a solution below. a. The total explicit costs of running the store are $ The total implicit costs of running the store are $ b. The accounting profit of the variety store is $ The economic profit of the variety store is $

Rodriguez operates a variety store that provides an annual revenue of $550,000. Each year, he pays $25,000 in rent for the store, $20,000 in business taxes, and $400,000 on products to sell. He estimates he could put the $100,000 he has invested in the store into his friend's restaurant business instead and earn an annual 20% profit on his funds. He also estimates that he and his family could earn a total annual wage of $90,000 if they worked somewhere other than the store. Include a minus sign (-) in front of any negative values entered as a solution below. a. The total explicit costs of running the store are $ The total implicit costs of running the store are $ b. The accounting profit of the variety store is $ The economic profit of the variety store is $

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.6P

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