Yael decides that she no longer enjoys herjob, and she quits to open a gluten-free, dairy-free kosher bakery. She pays a monthly rent for her store of $2,000. Her labor costs for one month are $4,500, and she spends $6,000 a month on nut flours, sugar, and other supplies. Yael was earning $2,500 a month working as a bank teller. These are her only costs. Her monthly revenue is $14,000. Which of the following statements about Yael's costs and profit are correct?

A. An accountant would say she is earning a monthly profit of $1,500.

B. Her explicit costs include the labor, rent, and supplies for her store.

C. Her implicit costs are $2,500 a month.

D. An economist would tell her that she is experiencing a loss. Her total costs are $12,500 a month.

E. Her economic profit is $1,500 a month.

Question

Dominique Kelly

Business

15 August, 11:33

Yael decides that she no longer enjoys herjob, and she quits to open a gluten-free, dairy-free kosher bakery. She pays a monthly rent for her store of $2,000. Her labor costs for one month are $4,500, and she spends $6,000 a month on nut flours, sugar, and other supplies. Yael was earning $2,500 a month working as a bank teller. These are her only costs. Her monthly revenue is $14,000. Which of the following statements about Yael's costs and profit are correct?

A. An accountant would say she is earning a monthly profit of $1,500.

B. Her explicit costs include the labor, rent, and supplies for her store.

C. Her implicit costs are $2,500 a month.

D. An economist would tell her that she is experiencing a loss. Her total costs are $12,500 a month.

E. Her economic profit is $1,500 a month.

+3

Answers (2)

Know the Answer?

Thelma · Answer 1

Answer:E

Explanation: Her total cost in a month is $12500, while her profit is $1500 a month.

Her monthly revenue is $14000

Her monthly expenses is $12500

$14000 - $12500 = $1500.

Gabby · Answer 2

E. her economic profit is $1500 a month