Emily recently graduated with a B.A. in economics and was offered a job with a small but growing company for $40,600 per year. About the same time, Emily inherited $65,000. She decided to pass up the job and use her inheritance to purchase a bubble tea shop rather than put the money into a bond fund (as her uncle suggested), which would have paid 6 percent per year interest. Emily works full-time at her new business, and at the end of the year she had revenues of $77,000 and total explicit costs of $30,000. a. What was Emily's accounting profit or loss for the year? Accounting (Click to select):$ b. What was her economic profit or loss for the year? Economic (Click to select): $

Emily recently graduated with a B.A. in economics and was offered a job with a small but growing company for $40,600 per year. About the same time, Emily inherited $65,000. She decided to pass up the job and use her inheritance to purchase a bubble tea shop rather than put the money into a bond fund (as her uncle suggested), which would have paid 6 percent per year interest. Emily works full-time at her new business, and at the end of the year she had revenues of $77,000 and total explicit costs of $30,000. a. What was Emily's accounting profit or loss for the year? Accounting (Click to select):$ b. What was her economic profit or loss for the year? Economic (Click to select): $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Emily recently graduated with a B.A. in economics and was offered a job with a small but growing company for $40,600 per year.
About the same time, Emily inherited $65,000. She decided to pass up the job and use her inheritance to purchase a bubble tea shop
rather than put the money into a bond fund (as her uncle suggested), which would have paid 6 percent per year interest. Emily works
full-time at her new business, and at the end of the year she had revenues of $77,000 and total explicit costs of $30,000.
a. What was Emily's accounting profit or loss for the year?
Accounting (Click to select) $
b. What was her economic profit or loss for the year?
Economic (Click to select)

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