Audra runs a movie memorabilia website. Last year, she earned $35,000 in revenue and had explicit costs of $8,000. Audra could have made $35,000 working for a security company and received an additional $10,000 if she had used the company's inputs in a different way. Calculate Audra's economic profit.

Audra runs a movie memorabilia website. Last year, she earned $35,000 in revenue and had explicit costs of $8,000. Audra could have made $35,000 working for a security company and received an additional $10,000 if she had used the company's inputs in a different way. Calculate Audra's economic profit.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

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