Calculate the economic profit of the tree-trimming firm whose explicit and implicit expenses are shown. ms. tree has a total revenue of $98,000. ms. tree's economic profit and the entry or exit decision explicit costs per year payment on the loan on boom lift truck $12,000 gasoline $4,000 miscellaneous equipment $16,000 implicit costs earnings forgone by not working for mr. plow $45,000 the forgone income that the $50,000 invested in the boom lift truck could have earned if invested elsewhere

Given:
Ms. Tree's total revenue of $98,000.
explicit costs per year
payment on the loan on boom lift truck $12,000
gasoline $4,000
miscellaneous equipment $16,000

implicit costs
earnings forgone by not working for mr. plow $45,000
the forgone income that the $50,000 invested in the boom lift truck could have earned if invested elsewhere

Explicit cost = 12,000 + 4,000 + 16,000 = 32,000
Implicit cost = 45,000 + 50,000 = 95,000

Economic profit or loss is computed by getting the difference from the revenue received from a sale of an output and the opportunity cost of the inputs. 

Revenue:                         98,000
less: explicit cost:            (32,000)
Accounting Profit             66,000
less: implicit cost             (95,000)
Economic loss                 (29,000)

There is an economic loss because Ms. Tree would have earned more had she stayed and worked for Mr. Plow and invested the money used in buying the boom lift truck.