8. Consider again the situation in problem 7 above. What difference would it make in Jean's calculations of economic and accounting profits if rather than having to find a studio, she owns a space that she could rent for $2,500 per month if she did not use it herself? a) Both accounting and economic profits would increase b) Economic profits would increase but accounting profits would remain unchanged c) Accounting profits would increase, but economic profit would remain unchanged d) Neither economic nor accounting profits would change.

8. Consider again the situation in problem 7 above. What difference would it make in Jean's calculations of economic and accounting profits if rather than having to find a studio, she owns a space that she could rent for $2,500 per month if she did not use it herself? a) Both accounting and economic profits would increase b) Economic profits would increase but accounting profits would remain unchanged c) Accounting profits would increase, but economic profit would remain unchanged d) Neither economic nor accounting profits would change.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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