Rob quit a job working 20 hours per week at a Subway sandwich shop to make sandwiches himself in his college dorm room that he sells to hungry students. If he had been paid $9 per hour at Subway and now works the same 20 hours per week but sells his sandwiches for $300 a week and pays only $100 a week for supplies, how much economic profit does he make?

Based on the** current amount** that Rob makes selling sandwiches to students, his e conomic profi t would be $20.
What is Rob's economic profit?
First, find out how much he was** getting paid:**
= 20 x 9
=** $180**
The amount he makes from selling sandwiches is:
= 300 - 100 for supplies
= $200
His** economic profit **is:
= Current income - Previus income
= 200 - 180
= $20
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Answered by Parrain | 2024-06-16

To calculate the economic profit that Rob makes from selling sandwiches in his college dorm room, we need to consider both his revenues and costs, including the opportunity cost of not working at Subway.
Firstly, we'll calculate his total revenue from selling sandwiches, which is $300 per week. Then we'll subtract the cost of supplies, which amounts to $100 per week. The result is Rob's accounting profit , which would be $200 ($300 revenue - $100 supplies). However, we must also account for the opportunity cost, which in this case is the wage he would have earned at Subway. Having worked 20 hours per week for $9 per hour, he would have earned $180 (20 hours * $9 per hour).
To find Rob's economic profit, we subtract the opportunity cost from his accounting profit. Therefore, his economic profit is $20 ($200 accounting profit - $180 opportunity cost).

Answered by DanielDayLewis | 2024-06-18

Rob's economic profit from selling sandwiches in his dorm room is $20 per week, calculated by comparing his income from sales after costs to his previous income at Subway.
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Answered by Parrain | 2024-08-09