Suppose ernie gives up his job as financial advisor for, Ask an Expert

Economics

Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned $30,000 per year, to open up a store selling spot remover to Dalmatians. He invested $10,000 in the store, which had been in savings earning 5 percent interest. This year's revenues in the new business were $50,000, and explicit costs were $10,000. Calculate Ernie's accounting profit and economic profit.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92009124

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