Suppose that Joe is the owner-operator of Joe's Haircuts. Last year he earned $100,000 in total revenue and paid $65,000 to his employees and suppliers. During this last year Joe received three job offers to work for other businesses, with the highest being $40,000 per year. What was Joe's accounting profit for the last year? What was Joe's economic profit for the last year?

Suppose that Joe is the owner-operator of Joe's Haircuts. Last year he earned $100,000 in total revenue and paid $65,000 to his employees and suppliers. During this last year Joe received three job offers to work for other businesses, with the highest being $40,000 per year. What was Joe's accounting profit for the last year? What was Joe's economic profit for the last year?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 40P: Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from...

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