Answers That Count - Hosted By Charles Musgrove

In this session, Professor Joe Calhoun joins us again on the September 11 anniversary of the attack on the US. We give recognition of the importance of the date in our history. 

COVID is still a part of what we are dealing with in the economy as we see the government continue lifting restrictions on businesses. The most recent in the State of Florida is the opening of bars and lounges, with restrictions. Even with the lifting of some of the restrictions, many businesses will opt to remain close and not battle the restrictions on their business.

The economic recovery is fragmented and winners and losers will be determined post-COVID.

We also discuss the economic theory of 'profits direct businesses toward productive activities that increase the value of resources, while losses direct them away from wasteful activities that reduce resource value.'

Profit as calculated by the accountant is different than the economists calculation of profit. The explicit cost (accountants' calculation) plus the opportunity cost = the total economic cost. The economic cost is normally used by the entrepreneur to provide a baseline to make business decisions.