George quits a $50,000 a year job at Tesla, borrows $20,000 on his line of credit at a 12% interest rate, and opens a tourism business. After one year he earned accounting profits of $40,000. His economic profits are Select one: O A. $37,600. O B. - $12,400. OC. - $10,000. O D. $10,000. O E. $40,000.

George quits a $50,000 a year job at Tesla, borrows $20,000 on his line of credit at a 12% interest rate, and opens a tourism business. After one year he earned accounting profits of $40,000. His economic profits are Select one: O A. $37,600. O B. - $12,400. OC. - $10,000. O D. $10,000. O E. $40,000.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 7SCQ: Suppose the cost of machines increases to 55, while the cost of labor stays at 40. How would that...

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