Answer
Accounting Profit = 35,000 dollars
Economic Profit = 13,000
Work Step by Step
Accounting Profit:
72,000 - (12,000 + 5,000 + 20,000) = 35,000
Economic Profit:
72,000 - (12,000 + 5,000 + 20,000 + 4,000 + 15,000 + 3,000) = 13,000
Economics: Principles, Problems, and Policies, 19th Edition
by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.
Published by
McGraw-Hill Education
ISBN 10:
0073511447
ISBN 13:
978-0-07351-144-3
Chapter 7 - Businesses and the Costs of Production - Problems - Page 162: 1
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