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Mathematics, 17.06.2020 02:57 abcdefg87
An individual leaves a college faculty, where she was earning $70,000 a year, to begin a new venture. She invests her savings of $42,000, which were earning 6 percent annually. She then spends $22,000 renting office equipment, hires two students at $18,000 a year each, rents office space for $9,000, and has other variable expenses of $40,000. At the end of the year, her revenues are $230,000.
1. Her accounting profit is $..?
2. Her economic profit is $..?
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An individual leaves a college faculty, where she was earning $70,000 a year, to begin a new venture...
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