Question

Yamanik Unlimited produces and sells 10{,}00010,00010, comma, 000 greeting cards in a competitive market. It has explicit costs of \$4{,}000$4,000dollar sign, 4, comma, 000 and opportunity cost of capital of \$1{,}000$1,000dollar sign, 1, comma, 000. If the owner of Yamanik Unlimited closed her business for good and took another job, she could be earning \$31{,}000$31,000dollar sign, 31, comma, 000 per year. The price of a greeting card is \$5$5dollar sign, 5.

Answer 1

$14,000

Step-by-step explanation:

Calculation for Yamanik Unlimited’s economic profit

First step is to calculate the Total revenue

Total revenue= $5 x 10,000

Total revenue = $50,000

Second Step is to calculate the Total costs

Total costs =$4000+ $1000 + $31,000

Total costs= $36,000

Last step is to calculate the Unlimited’s economic profit using this formula

Unlimited’s economic profit=Total revenue-Total costs

Let plug in the formula

Unlimited’s economic profit=$50,000-$36,000

Unlimited’s economic profit=$14,000

Therefore Yamanik Unlimited’s economic profit will be $14,000