Calculate sandy economic profit under each of scenarios

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Reference no: EM131824641

Question: Sandy owns a firm with annual revenues of $1,000,000. Wages, rent, and other costs are $900,000.

a. Calculate Sandy's accounting profit.

b. Suppose that instead of being an entrepreneur, Sandy could get a job with one of the following annual salaries

(i) $50,000;

(ii) $100,000; or

(iii) $250,000.

Assume that a job would be as satisfying to Sandy as being an entrepreneur. Calculate Sandy's economic profit under each of these scenarios.

Reference no: EM131824641

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