Question

John's accountant tells him that he made a profit of $43,002 running a pottery studio in Orlando. John's wife, an economist, claims John lost $43,002 running his pottery studio. This means his wife is claiming that he incurred _____ in _____ costs.

Answer 1

John's accountant tells him that he made a profit of $43,002 running a pottery studio in Orlando. John's wife, an economist, claims John lost $43,002 running his pottery studio. This means his wife is claiming that he incurred $86,004 in implicit costs.

Step-by-step explanation:

Accounting profit =$43002

Economic profit =-$43002

Economic profit =Accounting profit - implicit cost

-43002=43002 -Implicit cost

Implicit cost =86004