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Sagot :
Answer:
See below
Explanation:
With regards to the above,
Implicit cost + Explicit cost = 5,000(loss of salary) + $2,500(kiosk rent) = $7,500
Total variable cost = $1.34 × Q
Cost function = C(Q) = 7,500 + 1.34 * Q
Total revenue = R(Q) = Price * Quantity = $2.25 * Q
Profit = TR - TC = $2.25 * Q - 7,500 - 1.34Q
= $0.91Q - 7,500
Here,
Entrepreneur will only make profit where
0.91Q > 7,500
Q = 8,241.7
She needs to have 8,241.7 at least in order to turn a profit
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