During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent and utilities. The firm’s owner has provided $750,000 of her own money instead of investing the money and earning a 10 percent annual rate of return. The accounting costs of the firm are $______________________ The opportunity cost is $______________________ Total economic costs are $______________________ Accounting profits are $______________________ Economic profits are $______________________
During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent and utilities. The firm’s owner has provided $750,000 of her own money instead of investing the money and earning a 10 percent annual
The accounting costs of the firm are $______________________
The
Total economic costs are $______________________
Accounting profits are $______________________
Economic profits are $______________________
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