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xenn [34]
3 years ago
7

Jamar used to work as an office manager, earning $40,000 per year. He gave up that job to start a life-coaching business. In cal

culating the economic profit of his life-coaching business, the $40,000 income that he gave up is counted as part of the life-coaching businesses.
Business
1 answer:
Eva8 [605]3 years ago
7 0

Answer:

B) opportunity costs.

Explanation:

The $40,000 salary that Jamar gave up are part of his opportunity costs.

Opportunity costs are the costs (or benefits lost) from choosing one activity or investment over another alternative.

When you calculate the economic profit of a new project you must include all the implicit or opportunity costs that you incur or lose due to the new project:

economic profit = accounting profit - implicit costs

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Answer:

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Sav [38]
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The items that describes what happens at the equilibrium price are:


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6 0
4 years ago
Read 2 more answers
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