-Kendrick owns a record label in Compton, California. In 2019 he paid $400,000 in wages, $60,000 in equipment, and $100,000 for music rights. He could rent out the studio that he owns for $40,000 a year and work as a freelance producer and writer earning $100,000 a year. His total revenue was $650,000.

1. Calculate Kendrick's explicit costs.

2. Calculate Kendrick's implicit costs.

6. What is Kendrick's accounting profit?

7. What is Kendrick's economic profit?

8. Assume that Kendrick's benefits from owning a record label and working as a freelance producer/writer are the same. Based on this information, what would an economist likely suggest that Kendrick should do? Explain.

9. Suppose instead that Kendrick's revenue was $800,000, what would an economist suggest that he should do?

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The detailed answer for the above question is provided below 1 560000 2 140000 3 Accounting profit 90000 4 Economic losses 50000 5 The decision depend... View the full answer