Essay
Ernesto owns a house painting company. Total sales for the past year were $75,000. His bills for running the business were $30,000. Stan, who owns a furniture-making company, previously asked Ernesto to come work for him at a salary of $40,000. What is Ernesto's accounting and economic profit? Would Ernesto make more money working for Sam or working for himself? Explain your answer.
Correct Answer:
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Ernesto's accounting profit was $45,000 ...View Answer
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Correct Answer:
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