Answer:
Manisha's economic profits are - $5,000.
Explanation:
Manisha could work for another firm making $10,000 per month, but she decides to open her gourmet cheese store and pay herself $2,000 per month.
In her first month of operations, she spends $6,000 on cheese, $1,000 on other items, and $2,500 on rent.
She had a great opening month and brought in revenues of $14,500.
The economic profits
= Total revenue - (Implicit costs + explicit costs)
= $14,500 - ($10,000 + $6,000 + $1,000 + $2,500)
= $14,500 - $19,500
= - $5,000
