Sara has decided to quit her corporate job and live her dream by opening up her own food truck selling her “famous” tacos. She expects to earn $90,000 per year once she gets a loyal following. To run her business, she will need to get a food truck, equipment, and a license. The food truck will cost her $800 per month to lease, equipment rentals are $150 per month and an annual license is $300. Sara will also be taking a large pay cut to follow her dream. Her corporate job’s annual salary is $100,000 annually.

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Sara has decided to quit her corporate job and live her dream by opening up her own food truck selling her “famous” tacos. She expects to earn $90,000 per year once she gets a loyal following. To run her business, she will need to get a food truck, equipment, and a license. The food truck will cost her $800 per month to lease, equipment rentals are $150 per month and an annual license is $300. Sara will also be taking a large pay cut to follow her dream. Her corporate job’s annual salary is $100,000 annually.

What is Sara’s economic profit?

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