Discussion:
Mr. Kamal used to be a manager of a departmental store and earned $50,000 per year. Recently, he has decided to open a new shop by his own. The expected revenues from the shop in the first year of its operation are $200,000 and the expected expenses are $30,000 for salaries of workers, $5,000 for supplies, $3,000 for rent, $1,500 for utilities, and $4,000 for interest on a bank loan.
Find out his explicit costs, implicit costs, total economic costs, Accounting profit and economic profit.
Decide whether Mr. Kamal should open the shop or not based on your revenue and expenses calculation