Table :

TABLE 9-2 Ashley’s Economic Profit from Acquiring Teaching Degree

Value of increase in lifetime earnings

$100,000

Explicit cost:

 

  Tuition

−40,000

  Interest paid on student loan

− 4,000

Accounting Profit

56,000

Implicit cost:

 

  Value of income forgone during 2 years spent in school

−57,000

Economic Profit

−1,000