You run your own woodworking business. Each month your revenue is $10,500 while you pay $2,200...

 

Transcribed Image Text:

You run your own woodworking business. Each month your revenue is $10,500 while you pay $2,200 in materials, $1,000 in rent for your woodworking shop, and $700 in business taxes. You estimate you could put the $20,000 you have invested in your business into your friend's house painting business and earn a monthly 1 percent profit on your funds. You also estimate that you could earn a monthly wage of $5.000 if you worked for your friend's housepainting business a. The total explicit costs of running the business is $[ The total implicit costs of running the business is $[ b. The accounting profit of the woodworking business is $ The economic profit of the woodworking business is S c. You (Click to select) stay in business because you are making an [Click to select) You run your own woodworking business. Each month your revenue is $10,500 while you pay $2,200 in materials, $1,000 in rent for your woodworking shop, and $700 in business taxes. You estimate you could put the $20,000 you have invested in your business into your friend's house painting business and earn a monthly 1 percent profit on your funds. You also estimate that you could earn a monthly wage of $5.000 if you worked for your friend's housepainting business a. The total explicit costs of running the business is $[ The total implicit costs of running the business is $[ b. The accounting profit of the woodworking business is $ The economic profit of the woodworking business is S c. You (Click to select) stay in business because you are making an [Click to select)

Answer rating: 100% (QA)

a The total explicit costs of running the business Explicit costs are the direct outofpocket expense... View the full answer