Tom quit his $65,000 a year corporate lawyer job to open up his own law practice. in tom's first year in business his total revenue equaled $150,000. tom's explicit cost during the year totaled $85,000. what is tom’s economic profit for his first year in business?
a) $0
b) $85, 000
c) $20, 000
d) $65, 000

Given:

Implicit Cost = $65,000

Total revenue = $150,000

Explicit cost =  $85,000

Here, we'll compute the economic profit for the first year as :

Economic profit = Total revenue - (Explicit cost + Implicit Cost)

Economic profit = $150,000 - ($85,000 + $65,000)

Economic profit = $0

∴ Tom’s economic profit for his first year in business will be $0

The correct option is (a).

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"