Answer :
If Rob sells his sandwiches for $300 dollars a week and pays only $100 dollars a week for supplies he earns $200 dollar a week in profit $300-$100=$200. In addition he now earns $10 per hour ($200/20hrs= $10 per hour). He now makes more money per hour than when he worked at the sandwich shop.
Based on the current amount that Rob makes selling sandwiches to students, his economic profit 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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