Fay runs a hot dog cart at the sports stadium. Fay has no skills, no job experience, and no alternative employment. Entrepreneurs in the hot dog cart business earn $12,000 a year. Fay pays the rent of...

Extracted text: Fay runs a hot dog cart at the sports stadium. Fay has no skills, no job experience, and no alternative employment. Entrepreneurs in the hot dog cart business earn $12,000 a year. Fay pays the rent of $2,000 a year, and her total revenue is $15,000 a year. She borrowed $1,000 at 10 percent a year to buy equipment. At the end of one year, Fay was offered $600 for her business and all its equipment. Fay's explicit costs are $ 2,100. Fay's implicit costs are $ 12,400'. Fay's economic profit in the first year is 500 dollars.