Bob decides to quit his job as a teacher, in which he makes $50,000, to open a restaurant. The explicit cost of running his restaurant is $500,000, while the revenue for his business is $525,000. What is his accounting profit or loss? What is his economic profit or loss? What is the implicit cost in this example?

Answer rating: 100% (QA)

To calculate Bobs accounting profit or loss we subtract the explicit costs from the revenue A... View the full answer