In 2018, Nicole taught music and earned $30,000.On January 1, 2019, she quit teaching and started ahome decorating business. The information on the right describesher first year in the new business.What are Nicole's explicit costs, implicit costs, and economic profitin 2019?Nicole's explicit costs areareA. $7,000; $81,600B. $5,000; $82,100C. $37,000; $83,500D. $82,100; $5,000E. $81,600; $7,000Nicole's economic profit in 2019 isand her implicit costsdollars.WQuestion FactsIn 2018, Nicole taught music and earned $30,000.In 2019,iii=1:3ivviShe stopped renting out her basement for$6,500 a year and used it as her business officeinstead.She paid $3,000 for a set of sample booksand $2,000 for a booth at the Home Show.She earned interest at 5 percent a year on hersavings account balance.She took $2,000 from her savings account to buya sewing machine.At the end of 2019, Nicole could have sold hersewing machine for $1,500.She received a total revenue of $55,000 from herhome decorating business.Normal profit is $45,000 a year.

Explicit costs are direct and obvious out-of-pocket expenses incurred by a business in the…

In 2018, Nicole taught music and earned $30,000. On January 1, 2019, she quit teaching and started a home decorating business. The information on the right describes her first year in the new business. What are Nicole's explicit costs, implicit costs, and economic profit in 2019? Nicole's explicit costs are are A. $7,000; $81,600 OB. $5,000; $82,100 C. $37,000; $83,500 D. $82,100; $5,000 E. $81,600; $7,000 Nicole's economic profit in 2019 is and her implicit costs dollars. Question Facts In 2018, Nicole taught music and earned $30,000. In 2019, İ ii iii iv V She stopped renting out her basement for $6,500 a year and used it as her business office instead. She paid $3,000 for a set of sample books and $2,000 for a booth at the Home Show. She earned interest at 5 percent a year on her savings account balance. She took $2,000 from her savings account to buy a sewing machine. At the end of 2019, Nicole could have sold her sewing machine for $1,500. She received a total revenue of $55,000 from her home decorating business. vi Normal profit is $45,000 a year.

In 2018, Nicole taught music and earned $30,000. On January 1, 2019, she quit teaching and started a home decorating business. The information on the right describes her first year in the new business. What are Nicole's explicit costs, implicit costs, and economic profit in 2019? Nicole's explicit costs are are A. $7,000; $81,600 OB. $5,000; $82,100 C. $37,000; $83,500 D. $82,100; $5,000 E. $81,600; $7,000 Nicole's economic profit in 2019 is and her implicit costs dollars. Question Facts In 2018, Nicole taught music and earned $30,000. In 2019, İ ii iii iv V She stopped renting out her basement for $6,500 a year and used it as her business office instead. She paid $3,000 for a set of sample books and $2,000 for a booth at the Home Show. She earned interest at 5 percent a year on her savings account balance. She took $2,000 from her savings account to buy a sewing machine. At the end of 2019, Nicole could have sold her sewing machine for $1,500. She received a total revenue of $55,000 from her home decorating business. vi Normal profit is $45,000 a year.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

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