What are janes explicit costs and total revenue

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Jane quit her job at IBM where she earned $50,000 a year. She cashed in $50,000 in corporate bonds that earned 10% interest annually to buy a mini-bus. Jane has decided to buy the mini-bus and set up a commuter service between Lincoln and Omaha. There are 1000 people who will pay $400 a year each for the commuter service; $280 from each person goes for gas, maintenance, insurance, depreciation, etc.

(a) Complete the following questions: (1) What are Jane's total revenues? (2) What are Jane's explicit costs? (3) What is her accounting profit?

(b) List two important implicit costs that Jane has not included.

Reference no: EM13239060

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