Tom quit his $65,000 a year corporate lawyer job to open up his own law practice. in tom's first year in business his total revenue equaled $150,000. tom's explicit cost during the year totaled $85,000. what is tom’s economic profit for his first year in business?
a) $0
b) $85, 000
c) $20, 000
d) $65, 000

Given:

Implicit Cost = $65,000

Total revenue = $150,000

Explicit cost =  $85,000

Here, we'll compute the economic profit for the first year as :

Economic profit = Total revenue - (Explicit cost + Implicit Cost)

Economic profit = $150,000 - ($85,000 + $65,000)

Economic profit = $0

∴ Tom’s economic profit for his first year in business will be $0

The correct option is (a).

answer; ///i believe the correct answer is (c) laissez-faire;

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!