According to the information provided, at the end of the first year of operating her new business, Lee's accountant reported an accounting profit of $70 000.What was Lee's economic profit?

Question

Quizplus · Accepted Answer

Economic profit is calculated by subtracting both explicit and implicit costs from total revenue. If Lee's accounting profit is $70,000 and implicit costs (opportunity costs) are $50,000, then her economic profit would be $20,000 ($70,000 - $50,000).

According to the Information Provided, at the End of the First