Problem
Joe runs a shoe shine stand at the airport. Joe has no skills, no job experience, and no alternative job. The return to entrepreneurship in the shoe shine business is $10,000 a year. Joe pays the airport rent of $2,000 a year, and his total revenue from shining shoes is $15,000 a year. He spent $1,000 on a chair, polish, and brushes and paid for these items using a loan that has an interest rate of 20 percent a year. At the end of one year, Joe was offered $500 for his business and all its equipment. Calculate Joe's annual explicit costs, implicit costs, and economic profit from his shoe shine business.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.