Essay
A lawyer is contemplating quitting her current job with a major corporation (where she earns an annual salary of $110,000) to open her own law practice. She estimates that the total cost of operating the office will be approximately $118,000 per year. The potential revenue is estimated as $200,000 per year. Compute her accounting cost, accounting profit, economic cost, and economic profit.
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Total accounting cost is $118,000. Total...View Answer
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