(a) Opportunity cost is the $60,000 in foregone salary that Adam might have earned had he decided to work as a general manager for the supermarket chain.
(b) TR = Total revenue
Tc =total cost
π= profit
Adam's accounting profit
π=TR−TCexplicit= $200,000−$180,000=$20,000
(c) Adam's economic profit
π=TR−TCexplicit−TCimplicit=$200,000−$180,000−$30,000=−$10000
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