how to find accounting and economic profit- please help!?

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How do I solve the accounting and economic profit for the following:Suppose Kristen owns and operates a piano store. On average her total revenur i $200k and her total costs are $150k yearly. The market clearing price for renting her facilities are $10k, and she knows for certain that she could earn a salary of $45k a year working as an assistant manger at another company

Prof. Cristobal Welch · Accepted Answer

Well the accounting profit is simply the total revenue which is 200k, but economics profit is accounting profit minus costs or total revenue minus costs so 200-150-10=40k so her economic profit is 40k. If she were to work as an assitant manager she would be making more money because she doesnât have any costs to pay so if i were her i would quit my job and work as an assistant manager. Hope that helps ð

Prof. Cristobal Welch · Answer

How To Find Accounting Profit

Prof. Cristobal Welch · Answer

This Site Might Help You.RE:how to find accounting and economic profit- please help!?How do I solve the accounting and economic profit for the following: Suppose Kristen owns and operates a piano store. On average her total revenur i $200k and her total costs are $150k yearly. The market clearing price for renting her facilities are $10k, and she knows for certain that she couldâ¦

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how to find accounting and economic profit- please help!?

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