An opportunity cost of running the hardware store.

Question

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: of Select one: a. $10,000 b. zero c. - $15,000 d. $20,000

Answer 1

Question

Chapter 12, Problem 2PA

Subpart (a):

To determine

An opportunity cost of running the hardware store.

Subpart (b):

To determine

An opportunity cost of running the hardware store.

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