SpongeBob SquarePants wants to start a business sellingjellyfish as household pets. To get his enterprise started he musttake one day off from work at the Krusty Krab to purchase theneeded equipment and build the pen for the jellyfish. So SpongeBobhas Squidward cover his 8 hour shift (where he makes $5 per hour),goes to the hardware store and purchases a net for $30, fish foodfor $50, and wire for the pen for $20. After a week ofjelly-fishing in his spare time, Mr. SquarePants hascaptured 28 jellyfish which he plans on selling for $5 each.

Assuming that SpongeBob sells all jellyfish:

a) Based on his explicit costs, calculate anddefine SpongeBob's profit (if any) or loss.

b) Based on both his explicit and implicit costs,calculate and define SpongeBob's profit (if any) or loss.

Answer rating: 100% (QA)

a To calculate SpongeBobs profit based on explicit costs we need to subtract his total explicit cost... View the full answer