. Answer Questions a-c below based upon the following data. Please provide an ac
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Question
. Answer Questions a-c below based upon the following data. Please provide an accurate complete and concise answer to each question. Show your work for possible partial credit.Entrepreneur's potential earnings as a salaried worker = $65,050
Annual lease on building = $34,006
Annual revenue from operations = $290,040
Payments to workers = $160,003
Utilities (electricity, water, disposal) costs = $8,010
Entrepreneur's potential economic profit from the next best entrepreneurial activity = $80,100
Entrepreneur's forgone interest on personal funds used to finance the business = $6,200
a) What are the entrepreneur’s explicit costs?
b) What are the entrepreneur’s implicit costs?
c) What are the entrepreneur’s economic profits from this activity?
Explanation / Answer
A. Annual lease on building = $34,006+Payments to workers = $160,003+Utilities (electricity, water, disposal) costs = $8,010=102,019 B. Entrepreneur's potential earnings as a salaried worker = $65,050+Entrepreneur's forgone interest on personal funds used to finance the business = $6,200=71,250 C. Annual revenue from operations = $290,040-Explicit cost 102,019-implicit cost 71,250=116,771 Hope this helps
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