Answer: $-65,000
Explanation: Economic profit is the difference between accounting profit and the sum of all opportunity costs.
When Jane decided to open her business, she turned down three jobs, therefore , her opportunity cost is the sum of all the income of the three jobs she didn't take which is equal to $115,000.
Economic profit = $50,000 - $115,000 = $-65,000.
I hope my answer helps.
Answer:
The answer is: a) $ 20,000; b) $ 10,000; c) $ 5,000.
Explanation:
Jane's economic benefit in relation to what she won and the other three jobs is as follows: the difference between what was actually earned, and what she could have earned in the other jobs, and according to each of them the differences would be: a) $ 50,000 - $ 30,000 = $ 20,000; b) $ 50,000 - $ 40,000 = $ 10,000; c) $ 50,000 - $ 45,000 = $ 5,000.
The answer is: a) $ 20,000; b) $ 10,000; c) $ 5,000.
