Markus worked as an office manager in 2015 and earned per year, € In 2016 he opened a furniture business. He used 40000 savings from his saving account (which earned 5% yearly interest in 2015) He submitted the following information to his accountant for the year 2016: Spent on materials Paid lease for equipment Paid wages Borrowed from the bank (with 10%yearly
Markus worked as an office manager in 2015 and earned per year, € In 2016 he opened a furniture business. He used 40000 savings from his saving account (which earned 5% yearly interest in 2015) He submitted the following information to his accountant for the year 2016: Spent on materials Paid lease for equipment Paid wages Borrowed from the bank (with 10%yearly
Chapter1: Making Economics Decisions
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![Economics
Markus worked as an office manager in 2015
and earned per year, € In 2016 he opened a
furniture business.
He used 40000 savings from his saving account
(which earned 5% yearly interest in 2015)
He submitted the following information to his
accountant for the year 2016: Spent on materials
Paid lease for equipment
Paid wages
Borrowed from the bank (with 10%yearly
interest rate) Revenue from sold furniture
35000
50000
10000
15000
100000
160000
Calculate explicit costs.
Calculate implicit costs
Calculate economic profit
Identify what can be considered as a normal
profit in this case. Explain why normal profit is
considered a type of cost to the firm.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3d82bd3-726f-4196-bffd-c6a5fc7ba16d%2F9eb804b7-c0c2-41c4-bc89-e16754002886%2Fyjsx9hv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Economics
Markus worked as an office manager in 2015
and earned per year, € In 2016 he opened a
furniture business.
He used 40000 savings from his saving account
(which earned 5% yearly interest in 2015)
He submitted the following information to his
accountant for the year 2016: Spent on materials
Paid lease for equipment
Paid wages
Borrowed from the bank (with 10%yearly
interest rate) Revenue from sold furniture
35000
50000
10000
15000
100000
160000
Calculate explicit costs.
Calculate implicit costs
Calculate economic profit
Identify what can be considered as a normal
profit in this case. Explain why normal profit is
considered a type of cost to the firm.
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