Answer:
a. −$80.
Explanation:
Ziva's economic profit =Revenue- (explicit costs + implicit costs)
Revenue= $300
Explicit costs=$130
Implicit cost=$25*10 =$250
Ziva's Economic Profit= $300-($130+$250)
=$300-$380
Ziva's Economic Profit=-$80.
Explicit cost is the same as accounting costs. This include cost of seeds(i.e $130), wages paid to workers, rent paid for farm land, etc.
Implicits costs on the other hand is called opportunity cost or alternative forgone.
The $25 per hour forgone by working on the farm land is implicit cost.
