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Rodriguez operates a variety store that provides an annual
Rodriguez operates a variety store that provides an annual revenue of $500,000. Each year, he pays $30,000 in rent for the store, $20,000 in business taxes, and $350,000 on products to sell. He estimates he could put the $100,000 he has invested in the store into his friend's restaurant business instead and earn an annual 20% profit on his funds. He also estimates that he and his family could earn a total annual wage of $90,000 if they worked somewhere other than the store.Include a minus sign (-) in front of any negative values entered as a solution below.
a. The total explicit costs of running the store are $.
The total implicit costs of running the store are $.
b. The accounting profit of the variety store is $.
The economic profit of the variety store is $.
c. Rodriguez(Click to select)shouldshould not
consider closing down this business because he is making a(Click to select)positive accounting profitzero accounting profitnegative economic profit (i.e. an economic loss)negative accounting profit (i.e. an accounting loss)positive economic profit
This question was answered on: Feb 21, 2020
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