Georgia quit her old job where she had been earning $50,000 a year to start her own business. She also invested all her savings into the business, which had been earning $10,000 a year in interest. At the end of her first year, Georgia's accountant told her she had made $70,000 in accounting profit. An economist would have told her she made an economic profit of:
Georgia quit her old job where she had been earning $50,000 a year to start her own business. She also invested all her savings into the business, which had been earning $10,000 a year in interest. At the end of her first year, Georgia's accountant told her she had made $70,000 in accounting profit. An economist would have told her she made an economic profit of:
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.1: What Are Costs?
Problem 1QQ
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