You are managing a restaurant establishment earning net of Php800,000.00 per year decides to open your own. The revenue during the first half of the year of operation is Php500,000.00 and the expenses per month are as follows: Salaries to hired helper 15,000 Supplies 20,000 Rent 5,000 Utilities 3,000 Calculate a) the explicit costs b) the business profit, d) the implicit cost c) the economic profit.

You are managing a restaurant establishment earning net of Php800,000.00 per year decides to open your own. The revenue during the first half of the year of operation is Php500,000.00 and the expenses per month are as follows: Salaries to hired helper 15,000 Supplies 20,000 Rent 5,000 Utilities 3,000 Calculate a) the explicit costs b) the business profit, d) the implicit cost c) the economic profit.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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