Solution-Calculate economic profit

Calculate economic profit

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Reference no: EM133373445

REDERICK currently works in a large law company (his salary = 150,000 zlotys per year).

However, he is considering opening his own company in his hometown, medium-sized city, in which - after starting the business - he expects to earn 220,000 zlotys per year.

In order to run his own business, he needs a seat and another employee doing simple part-time office work. He found the perfect office that he can rent for 70,000 zlotys per year.

It can also hire an employee for 35,000 zlotys per year ( part-time office work). If these figures are well estimated, will Fryderyk's legal practice be profitable?

Calculate economic profit.

Reference no: EM133373445

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Calculate economic profit

Reference no: EM133373445

Reference no: EM133373445

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