Calculate the explicit costs and implicit costs

Reference no: EM13187630

A woman managing a photocopy establishment for $25,000 per year decides to open her own duplicating place. Her revenue during the first year of operation is $120,000, and her expenses are as follows: Salaries- $45,000, Supplies $15,000, Rent- $10,000, Utilities $1,000, and Interest on bank loan $10,000.

Calculate the

(a) explicit costs

(b) implicit costs

(d) economic profit and

(e) normal return on investment in this business

Reference no: EM13187630

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