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Business, 17.10.2019 22:30 joThompson
Last year, jarod left a job that pays $60,000 to run his own bike-repair shop. jarod’s shop charges $65 for a repair, and last year the shop performed 3,000 repairs. jarod’s production costs for the year included rent, wages, and equipment. jarod spent $50,000 on rent and $100,000 on wages for his employees. jarod keeps whatever profit the shop earns, but does not pay himself an official wage. jarod borrowed $20,000 for the shop’s equipment at an annual interest rate of 5 percent. a. what is jarod’s accounting profit? b. what is jarod’s economic profit?
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Last year, jarod left a job that pays $60,000 to run his own bike-repair shop. jarod’s shop charges...
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