## This Post Has 5 Comments

1. faithiemusic689 says:

Jane's economic profit is $5,000. Explanation: Jane decides to open a business of her own and earns an accounting profit of$50,000 in the first year.

She turned down three job offers with salaries of $30,000,$40,000, and $45,000 to start her business. Here, the opportunity cost of doing business is$45,000 as the opportunity cost is the cost of giving up the second-best alternative.

The accounting profit does not consider implicit or opportunity cost. But in the calculation of economic profits, the implicit cost is considered.

Economic profits

= Accounting profit - Implicit cost

= $50,000 -$45,000

= $5,000 2. sleepqueen says: Economic profit calculated as accounting profit minus opportunity as job offer. 1 2 3 Accounting profit$50 000 $50 000$50 000

Opportunities (job offers) $30 000$40 000 $45 000 Economic profit$20 000 $10 000$5 000

Jacqui receives economic profit $20,000,$10,000 and $5,000 respectively from running her own business. answer Jacqui’s economic profit is$ 20,000, $20,000,$10,000 and $5,000 respectively from running her own business. 3. Countryqueen525 says: A.$5,000

Explanation:

Economic profit = Accounting profit - Implicit cost.

= $50000 -$45000

= $5,000 Therefore, Jacqui;s economic profit from running her own business is$ 5,000.

4. wendymtz2004 says:

A) $5,000 Explanation: Given that she turned down three separate job offers with annual salaries of$30,000, $40,000 and$45,000 and earned $50,000 in accounting profit in the first year from her business. The most likely option she would have opted for in place of her own business would have been the job offer of$45,000.

As such, Jacqui's economic profit from running her own business

= $50,000 -$45,000

= $5,000 5. laylac45531 says: Jacqui's economic profit from running her own business is$5,000

Explanation:

Economic Profit / loss is the net of of revenue made from sale of an output and all the expenses associated with that sale including opportunity cost as well.

Economic profit = Income - Implicit Expenses - Explicit Expenses

Implicit expenses are the opportunity costs and Explicit Expenses are all those incurred to generate the sale.

As there is no Explicit cost. For accounting profit Calculation economists consider the best alternative as an Implicit cost. The best alternative option is $45,000 Economic Profit =$50,000 - 45,000 = \$5,000