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a) A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountants estimate of total costs to be higher or lower than an economists estimate? Explain.
b) Kelly is a clerk and she earns $75,000 per annum. She thinks that her salary is too low, so she resigns and starts her own cake shop by using her savings of $100,000. The savings earn interest at 5% per annum. After one year, she earns an accounting profit of $80,000. What is Kelly’s economic profit? Explain and show your calculation.
c) Based on your answer in (b), is Kelly better off after running her own shop? Briefly explain.
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the industry that this claim were untrue, what critical questions could you ask about the HHI used for the study
Lubbock County is planning to construct a bridge across the Rio de Lubbock to facilitate afternoon skiing in the El Dusto Ski Basin. The first cost for the bridge will be $6,500,000. Annual maintenance and repairs will cost $25,000 for each of the fi..
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Graph Mary's marginal cost curve using the orange line and her marginal revenue curve using the blue line
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