A business owner makes 50 items a day. She spends 8 hours in producing those items. If hired elsewhere she could have earned $10 an hour. The item sells for $10 each. Production occurs seven days a week. If the explicit costs total $10,000 a month the economic profit for the month equals:

$2,600

Explanation:

The computation of economic profit is shown below:

Economic profit = Revenues - Economic cost

where,

Economic cost = Explicit cost + Implicit (opportunity) cost

where,

Implicit cost

= $10 × 8 hours × 30 days

= $2400

And,

Explicit cost for a month = $10,000

So,

Economic cost is

= $10,000 + $2400

= $12,400

Now

The Revenue

= Price × quantity

= $10 × 50 items × 30 days

= $15,000

Finally

Economic profit is

= $15,000 - $12,400

= $2,600

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.