Sam runs a shoeshine stand at the airport. Sam has no skills, no job experience, and no alternative employment.Entrepreneurs in the shoeshine stand business earn $12,000 a year. Sam pays the rent of $1,500 a year, and his total revenue is $15,000 a year.He borrowed $600 at 15% a year to buy equipment.At the end of one year, Sam was offered $300 for his business and all its equipment.
What are Sam's explicit costs? Implicit cost? and economic profit in the first year?