Identify each of Brian's costs in the following table as either an implicit cost or an explicit cost of selling boats. Implicit Cost Explicit Cost The wholesale cost for the boats that Brian pays the manufacturer The salary Brian could earn if he worked as an accountant The wages and utility bills that Brian pays The rental income Brian could receive if he chose to rent out his showroom Complete the following table by determining Brian's accounting and economic profit of his boat business. Profit (Dollars) Accounting Profit Economic Profit Alternatively, the economic profit he would earn as an accountant would be $ If Brian's goal is to maximize his economic profit, he stay in the boat business.
Identify each of Brian's costs in the following table as either an implicit cost or an explicit cost of selling boats. Implicit Cost Explicit Cost The wholesale cost for the boats that Brian pays the manufacturer The salary Brian could earn if he worked as an accountant The wages and utility bills that Brian pays The rental income Brian could receive if he chose to rent out his showroom Complete the following table by determining Brian's accounting and economic profit of his boat business. Profit (Dollars) Accounting Profit Economic Profit Alternatively, the economic profit he would earn as an accountant would be $ If Brian's goal is to maximize his economic profit, he stay in the boat business.
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 1.3P
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