Answer to Question #211325 in Economics for maria

Question

You are considering quitting your job where you earn $3,000

 per month and opening a new business. The cost of renting an office is $2,100

 per month, hiring employees would cost $3,300

 per month, and utilities would cost $100

 per month. The new business will earn a total revenue of $6,100

 per month. What is your economic profit?

Answer 1

$$6,100-(3,300+100)=2,700$$

$$2,700-3,000=(300)$$

The resulting economic profit is actually a loss, therefore, the decision to change the type of activity is erroneous.