Abdi gave up a job that paid $1000 a month to open up his own store. He works full-time in the store, which had total revenue of $100 000 last year. His total (explicit) costs amounted to s60 000. He adds that his store is now worth $150 000. If he were to sell it and invest the proceeds, he would earn a 6 percent annual return. What is Abdi's economic profit during the year?

Q&A Education