Barney decides to quit his job as a corporate accountant (which pays $10,000 a month) and go into business for himself as a certified public accountant.
he decides not to rent office space downtown but instead sets up shop in his converted garage apartment, which he could rent out for $300 a month if he wasn't using it as his own office.
he must purchase office supplies worth $75 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office.
after six months of working from home, barney has earned an average of $12,000 per month.
a. what are barney's average monthly accounting profits?
b. what are barney's average monthly economic profits?
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Barney decides to quit his job as a corporate accountant (which pays $10,000 a month) and go into bu...
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