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8. Consider again the situation in problem 7 above. What difference would it make in Jean's calculations of economic and accounting profits if rather than having to find a studio, she owns a space that she could rent for $2,500 per month if she did not use it herself? a) Both accounting and economic profits would increase b) Economic profits would increase but accounting profits would remain unchanged c) Accounting profits would increase, but economic profit would remain unchanged d) Neither economic nor accounting profits would change.

8. Consider again the situation in problem 7 above. What difference would it make in Jean's calculations of economic and accounting profits if rather than having to find a studio, she owns a space that she could rent for $2,500 per month if she did not use it herself? a) Both accounting and economic profits would increase b) Economic profits would increase but accounting profits would remain unchanged c) Accounting profits would increase, but economic profit would remain unchanged d) Neither economic nor accounting profits would change.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4CQQ
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8. Consider again the situation in problem 7 above. What difference would it make in Jean's calculations of economic and accounting profits if rather than having to find a studio, she owns a space that she could rent for $2,500 per month if she did not use it herself? a) Both accounting and economic profits would increase b) Economic profits would increase but accounting profits would remain unchanged c) Accounting profits would increase, but economic profit would remain unchanged d) Neither economic nor accounting profits would change.
Transcribed Image Text:8. Consider again the situation in problem 7 above. What difference would it make in Jean's calculations of economic and accounting profits if rather than having to find a studio, she owns a space that she could rent for $2,500 per month if she did not use it herself? a) Both accounting and economic profits would increase b) Economic profits would increase but accounting profits would remain unchanged c) Accounting profits would increase, but economic profit would remain unchanged d) Neither economic nor accounting profits would change.
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