What were the total revenue of harvey''s firm in first year

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Harvey quit his job at at a university where he earned 45,000 a year. He figures his entrepreneurial talent or foregone entrepreneurial income to be 5,000 a year. To start the business, he cashed in 100,000 in bonds that earned 10% interest annually to buy a company. In the first year, the firm sold 11,000 units of software at 75.00 for each unit. Of the 75.00 per unit, 55.00 goes for costs of production, packaging, marketing, employee wages and benefits, and rent on a building. a) What were the total revenue of Harvey's firm in the first year? b) The explicit costs of Harvey's firm in first year? c) The implicit costs of Harvey's firm in the first year? d) The normal profits for Harvey in the first year? e) The economic profits of Harvey's firm in the first year?

Reference no: EM13149682

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