An economist resigns her $100,000/year university teaching position to work fulltime in her own consulting business. In the first year she has total revenue of $250,000 and expenses of $100,000. Which of the following statements is correct?

i. Her accounting profit was $250,000
ii. Her accounting profit was $150,000
iii. Her economic profit was $50,000
iv. Her economic profit was $150,000

ii. Her accounting profit was $150,000

iii. Her economic profit was $50,000

Explanation:

The computation is shown below:

For accounting profit, it is

= Total revenues - total expenses i.e explicit cost

= $250,000 - $100,000

= $150,000

And, for economic profit

= Total revenues - total cost i.e explicit and implicit cost

= $250,000 - $100,000 - $100,000

= $50,000

Hence, the second and third options are correct

d,

hi i’m a student too and i’ve had this app downalodes for a few weeks people do answer it you just gotta be patient and what is your question + subject i’ll you?