5. Jessie Sunspot operated a business renting beach umbrellas this past summer. She operated the concession for 3 months. Jessie knew that rain was frequent along this stretch of beach, but she was lucky and enjoyed 80 rentable days this season. On each rentable day Jessie rented 30 umbrellas per day at $25 per rental. She ran the concession by herself, but had to pay Beachcomber Enterprises $40,000 for the concession (the use of the umbrellas and for the beachfront rental location). Suppose Jessie could have earned $20,000 during the summer as an Uber Driver. What were Jessie's Accounting Profits for undertaking the business? What were her Economic Profits? Accounting profits (πA): Economic profits (π): a. Did Jessie realize economic profits from the venture? If so, to what are these profits attributable? Positive economic profits? (Y/N) Justification:

5. Jessie Sunspot operated a business renting beach umbrellas this past summer. She operated the concession for 3 months. Jessie knew that rain was frequent along this stretch of beach, but she was lucky and enjoyed 80 rentable days this season. On each rentable day Jessie rented 30 umbrellas per day at $25 per rental. She ran the concession by herself, but had to pay Beachcomber Enterprises $40,000 for the concession (the use of the umbrellas and for the beachfront rental location). Suppose Jessie could have earned $20,000 during the summer as an Uber Driver. What were Jessie's Accounting Profits for undertaking the business? What were her Economic Profits? Accounting profits (πA): Economic profits (π): a. Did Jessie realize economic profits from the venture? If so, to what are these profits attributable? Positive economic profits? (Y/N) Justification:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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