Maria's Pizza Shop incurs $800,000 per year in explicit costs and $120,000 in implicit costs. The shop has $1 million in revenues and has $2 million in net worth. Based on this information, what is the economic profit for Maria's Pizza Shop? A. $200,000 B. $80,000 C. $400,000 D. $3 million

Maria's Pizza Shop incurs $800,000 per year in explicit costs and $120,000 in implicit costs. The shop has $1 million in revenues and has $2 million in net worth. Based on this information, what is the economic profit for Maria's Pizza Shop? A. $200,000 B. $80,000 C. $400,000 D. $3 million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Maria's Pizza Shop incurs $800,000 per year in explicit costs and $120,000 in implicit costs. The shop has $1 million in
revenues and has $2 million in net worth. Based on this information, what is the economic profit for Maria's Pizza Shop?
A.
$200,000
B.
$80,000
C.
$400,000
D.
$3 million

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