Calculate expected accounting profit and economic profit

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Reference no: EM133629841

Question

Say you are thinking of establishing a retail business to sell iPads. You think you can earn revenue of $10 million a year with expenses of $6.5 million a year, but you will have to sell your current business where you earn $1.5 million a year. (a) Identify the market structure the retail iPad market most likely follows. Calculate the expected accounting profit and economic profit you will make. What will happen to any economic profit in the long run? Briefly explain your answer.

Reference no: EM133629841

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