Question
2. Lucy quits a $50,000 job to open her waffle business. She makes $225,000 in revenue from her first year of waffle sales. She pulls $50,000 out of an account that returns 3% interest per year and invests the entire amount in her business. She also borrows $50,000 at 10% interest rate to invest in her business. After these initial investments, she also spends $10,000 on inputs and $50,000 on worker salaries.
Find total revenue, accounting cost, economic cost, implicit cost, explicit cost, economic profit, accounting profit.
Find total revenue, accounting cost, economic cost, implicit cost, explicit cost, economic profit, accounting profit.
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