4. Calculating Profits: An entrepreneur takes a one year leave of absence from her job, which...

 

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4. Calculating Profits: An entrepreneur takes a one year leave of absence from her job, which pays $70,000 per year, to open a record store. It costs $10,000 per year to rent the storefront for the record store, and average variable cost per record is $5. If she is paid $15 per record, what are her economic profits if she sells 10,000 records in a year? 4. Calculating Profits: An entrepreneur takes a one year leave of absence from her job, which pays $70,000 per year, to open a record store. It costs $10,000 per year to rent the storefront for the record store, and average variable cost per record is $5. If she is paid $15 per record, what are her economic profits if she sells 10,000 records in a year?

Answer rating: 100% (QA)

Step 1 Calculate total revenue Number of records sold Price per record 10000 re... View the full answer