From purely economic standpoint-evaluate success of business

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Reference no: EM131004751

Jason has long wanted to drive as an independent trucker, but the rental price for the truck Jason wanted is $6,000 per month and that was more than he could afford. For his 30th birthday, Jason’s father bought Jason the truck as a gift. Jason started driving the new truck as an independent trucker and was earning revenues of $18,000 a month with expenses of $13,000 a month (excluding any salary). He was recently bragging to a friend that he was clearing $5,000 a month from his business, which was better than the $4,000 a month he was making as a truck driver for his former employer, Global Shipping.

a. What are Jason’s explicit costs each month?

b. What are Jason’s implicit costs each month?

c. What is Jason’s economic profit each month? From a purely economic standpoint, evaluate the success of Jason’s business.

Reference no: EM131004751

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