An economist left her $100,000-a-year teaching position to work full time in her own consulting business. In her first year, she had total revenue of $200,000 and business expenses of $150,000. She made an):

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The economist experienced an economic loss because, despite earning a net income of $50,000 from her consulting business ($200,000 revenue - $150,000 expenses), she gave up a $100,000 salary from her teaching position. The opportunity cost of leaving her job ($100,000) exceeds her net income from the business, resulting in an economic loss.

An Economist Left Her $100,000-A-Year Teaching Position to Work Full