Joe is a fresh university graduate. He runs a fruit juice stand at the airport. To start his business, Joe withdrew his
time deposit, $200,000 from his bank. Originally, he can earn an interest rate of 5% a year. Joe pays $10,000 for
the airport rent and pays $7,500 for sundry expenses every month. His total revenue from selling fruit juice is
$240,000 a year.[#fa0011] He spent $50,000 on the machines he needs.[/#fa0011] At the end of one year, Joe was offered $20,000
for all his machines of fruit juice stand.
Calculate Joe’s annual explicit costs, implicit costs, and economic profit from his fruit juice business. List the items
included in your calculation steps. Show your workings. Do you recommend Joe to continue to operate his fruit
juice business based on your calculation? Explain briefly.

呢個chapter 係教economic cost and profit
點解紅字果筆唔計explicit cost