Question: A woman managing a photocopying establishment for $25,000 per year decides to open her own duplicating place. Her revenue during the first year of operation is $120,000, and her expenses are as follows:

Salaries to hire help: $45,000

Supplies: $15,000

Utilities: $1,000

Interest on bank loan: $10,000

Calculate the (a) explicit costs

(b) implicit costs

(c) the business profit

(d) the economic profit, and

(e) the normal return on investment