Suppose that a sole proprietor ship is earning total revenue of $300000 and is incurring explicit cost of $95,000 if the owner could work for another company for $50,000 a year what you conclude that the firm is incurring an economic loss or getting profit?

Suppose that a sole proprietor ship is earning total revenue of $300000 and is incurring explicit cost of $95,000 if the owner could work for another company for $50,000 a year what you conclude that the firm is incurring an economic loss or getting profit?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 5MC

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