Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year. He has invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year. Downloads generated $130,000 in revenue during the first year. What is his economic profit

Economic profit =$43,000

Explanation:

Accounting profit is the difference between revenue from from production or service activities and the expenditures incurred.

On the other hand, economic profit includes accounting profit plus opportunity cost. Opportunity cost is the value of the benefits sacrificed in favour of a decision.  

For example, the salary of $50,000 forfeited by Harvey in favor of his decision to become an entrepreneur is an example of opportunity cost

Economic profit = Accounting profit- opportunity cost

Accounting profit = Revenue - cost

Accounting profit = 130,000 - (20,000 + 17,000) = 93,000

Economic profit =  93,000  - 50,000 =$43000

Economic profit =$43,000

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.