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You leave your $50,000 a year job and invest your savings of $40,000 (on which you were earning 10 percent annual interest) to start your own business. In the first year, your business generated $100,000 in total revenue and had to pay $40,000 in explicit costs. The economic profit generated by this gym wasa. greater than your accounting profit because economic profit is always greater than accounting profit.
b. $6,000
c. $10,000
d. $60,000
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