Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

Exercise 19

Farmer McDonald was heard to complain, "Although my farm is still profitable, I just can't afford to stay in this business any longer. I'm going to sell out and start a fast-food business." In what sense is McDonald using the word profitable here? Explain why his statement might be correct if he means profits in the accountant's sense but would be dubious if he is referring to economic profits.