In 2006 Karl taught music and earned $25,000. On Janurary 1, 2007 he quit teachi

Question

In 2006 Karl taught music and earned $25,000. On Janurary 1, 2007 he quit teaching and stated a web site deisn buisness. The information below describes his first year in the new buisness

What is karl's economic profit in the first year?

Question Facts In 2006, Karl taught music and earned $25,000. In 2007, iHe stopped renting out his basement for $6,000 a year and used it as his business office instead ii He paid $2,000 for the lease of a Web Server and $3,000 for high-speed Internet service. i He earned interest at 5 percent a year on his savings account balance. He took $4,000 from his savings account to buy a computer. iv At the end of 2007, Karl could have sold his v He received a total revenue of $70,000 from his viNormal profit is $40,000 a year. computer for $3,500. Web site design business

Explanation / Answer

implicit cost should be considered

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