Suppose Marv, the owner-manager of Marv's Hot Dogs, earned $82,000 in revenue last year. Marv's explicit costs of operation totaled $36,000. Marv has a Bachelor of Science degree in mechanical engineering and could be earning $40,000 annually as mechanical engineer.
A. Marv's economic profit is $36,000.
B. Marv's economic profit is $6,000.
C. Marv's implicit cost of using owner-supplied resources is $36,000.
D. Marv's implicit cost of using owner-supplied resources is $30,000.
Answer: B
Economics
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Economics