During its only year of operation, a firm collected $175,000 in revenue and spent $50,000 on raw materials, labor, and utilities. the owners of the firm spent $100,000 of their own money to build the firm's factory (instead of buying bonds and earning a 10% annual rate of return), which they sold at the end of the year for $100,000. the firm's economic profit is:

The answer is: $115,000

Explanation:

Economic profit can be determined by the following formula:

economic profit = Revenues - (Explicit Costs + Implicit Costs)

where:

Economic profit = $175,000 - ($50,000 + $10,000) = $175,000 - $60,000

Economic profit = $115,000

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it