Sydney is interested in starting a new business but would


Sydney is interested in starting a new business, but would have to give up a job with a total compensation of $100,000 per year. After researching the new business opportunity, Sydney developed the following estimates.

Annual Revenues: ...................$300,000
Wages and payroll taxes (not including Sydney's): ......$100,000
Benefits: ......................$25,000
Supplies and materials costs: ..............$75,000
Rent: ........................$60,000

What is Sydney's economic profit?

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Managerial Economics: Sydney is interested in starting a new business but would
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