Jaynet spends $25,000 per year on painting supplies and storage space. She recently received two job...
Jaynet spends $25,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm – one offer was for $125,000 per year, and the other was for $105,000. However, she turned both jobs down to continue a painting career. If Jaynet sells 35 paintings per year at a price of $5,000 each:.
b. What are her economic profits?
Homework Answers
Economic profits = Total revenue-(Explicit costs+Implicit costs)
= (35*5000) - (25000+125000)
= 175000 - 150000
= 25000
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