Suppose juliana owns a small business making handbags. each month she makes 18 handbags, which she sells for $100 each. the materials used to make each handbag cost $50. in addition, juliana uses a spare room in her house to make the handbags and store her supplies. if she were not using the spare room for her business, she would use it as a guest room, an option that juliana would value at $250 per month. if juliana weren’t making handbags, she would work at trader joe’s earning $800 per month. what is juliana’s economic profit each month?

$-150

Explanation:

Sales Revenue = 18 handbags per month X $100 per handbag

                         =  $1,800

Variable costs = 18 handbags X $50 cost per handbag

                        = $900

Juliana's Net Income = $1,800 - $900

                                   = $900

Juliana's opportunity costs = $250 for renting guest room + $800 at job

                                             = $1050

Juliana's Economic Profit = Net Income - Total Opportunity Costs

                                        = $900 - $1,050

                                        = -$150

Hence, her economic profit is actually a negative 150 dollars.

i guess you could put raise the economic balance

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.