Question

Suppose a soccer coach has been making $25,000 per year but gives up his coaching job in order to make lace dollies. If his revenue from the sale of these dollies is $50,000 and his materials cost $20,000, then his economic profit is?

Answer 1

$ 5000

Step-by-step explanation:

Economic Profit = Revenue - Cost of Material - Opportunity Cost

Economic Profit = 50,000-20,000-25,000

Economic Profit = $5000