Tsubasa Kajitani can earn $4 million per year as a professional golfer. Suppose she quits golf and opens a sushi restaurant. Rent on the restaurant is$175,000 per year. Her payroll is $200,000, she has utility bills of $30,000 per year and her food and other materials costs is $450,000 per year.Tsubasa's sushi restaurant generates $900,000 in revenue its first year. Tsubasa's economic profit is Tsubasa Kajitani can earn $4 million per year as a professional golfer. Suppose she quits golf and opens a sushi restaurant. Rent on the restaurant is$175,000 per year. Her payroll is $200,000, she has utility bills of $30,000 per year and her food and other materials costs is $450,000 per year.Tsubasa's sushi restaurant generates $900,000 in revenue its first year. Tsubasa's economic profit is$45,000-$25,000$0-$3,955,000

While calculating economic profit opportunity cost and explicit costs are deducted from Revenue.

Answered: Tsubasa Kajitani can earn $4 million…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Costs And The Supply Of Goods

Section: Chapter Questions

Problem 19CQ

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Tsubasa Kajitani can earn $4 million per year as a professional golfer. Suppose she quits golf and opens a sushi restaurant. Rent on the restaurant is
$175,000 per year. Her payroll is $200,000, she has utility bills of $30,000 per year and her food and other materials costs is $450,000 per year.
Tsubasa's sushi restaurant generates $900,000 in revenue its first year. Tsubasa's economic profit is

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