An entrepreneur quits a job where she was paid $75,000 to set up her own business. The new firm had sales revenue of $300,000 last year, while spending $150,000 on compensation for employees (excluding the owner), $25,000 on capital, and $25,000 on materials. 

What was the firm's economic profit?

Answer rating: 100% (QA)

Economic profit is calculated by subtracting both explicit and implicit cos... View the full answer