
-Henry decides to quit his job,take his $60,000 in savings,and open a dry cleaning store.Figure 8-1 shows the revenues and expenditures for his first year of operation.Which of the following items would be included in the calculation of the shop's economic profit and not included in the accounting profit?
A) the cost of raw materials
B) the earnings from the dry cleaning store
C) the lost interest from the $60,000 in savings
D) Henry's salary from the dry cleaning store
E) none,since all items included in economic profit are also included in accounting profit
Correct Answer:
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Q1: Q2: The return to owners for innovation and Q4: All of the following,except one,are included in Q5: The behavior of firms is best understood Q6: To develop a useful picture of a Q7: The difference between accounting profit and economic Q8: Accounting profit is defined as![]()
A)total revenue minus
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