You have a small business that makes $50,000 accounting and economic profit for you. As a disabled person, you must work at home and you did not have other opportunities until your neighbor offers you a job you like equally well for $50,000 and you can do it at home. This means

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Economic profit takes into account opportunity costs, which in this case includes the $50,000 you could earn from the job offer. Since you're foregoing this opportunity by continuing with your business, your economic profit decreases. However, your accounting profit, which does not consider opportunity costs, remains the same at $50,000.

You Have a Small Business That Makes $50,000 Accounting and Economic