Answer:
total economic profit  = $28,000
so correct option is c.$28,000
Explanation:
given data
paid = $30,000 per year
invested = $20,000
earning interest = Â 10 percent
revenue 1st year = $60,000
to find out
forecast her profit to be
solution
we know that economic profit is express as difference between the total revenue and total cost ...............1
so total economic profit = revenue - paid - Interest earned on retirement  ....................2
as here it include both implicit and explicit cost of production of goods
and Implicit cost is the opportunity cost
so total economic profit = $60,000 - $30,000 - 10% of 20,000
total economic profit  = $28,000
so correct option is c.$28,000
The profit can be calculate as the difference between revenue and cost. The profit of Maureen will be $28,000.
Opportunity cost refers to the cost of foregone benefit. Simply speaking, an opportunity cost is the cost incurred on not choosing an alternative.
The profit of Muareen is the difference between her revenue and the opportunity cost.
[tex]\begin{aligned} \rm Opportunity\:cost &= \rm Salary\:from\:teaching\:job + Interest\:from\:retirement\:fund\\\\&= \$30,000 + (\$20,000 \:x\:10\%)\\\\&= \$30,000 + \$2,000\\\\&= \$32,000\end[/tex]
Therefore the profit will be:
[tex]\begin{aligned} \rm Profit &= \rm Revenue - Opportunity\: cost\\\\&= \$60,000 - \$32,000\\\\&= \$28,000\end[/tex]
Therefore the correct option is C.
Learn more about opportunity cost here:
https://brainly.com/question/17204577
