If, as an entrepreneur, I am earning accounting profits of $50,000 per year and the opportunity cost of my time is $60,000,

Question

Quizplus · Accepted Answer

Economic profit is calculated by subtracting opportunity costs from accounting profits. Here, the opportunity cost ($60,000) exceeds the accounting profit ($50,000), resulting in an economic loss of $10,000. Therefore, it may be advisable to close the business.

If, as an Entrepreneur, I Am Earning Accounting Profits of $50,000