Explain why an economist might not agree

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Problem

A person inherits £50,000 and uses it to buy a shop. At the end of the first financial year an accountant finds that sales receipts were £40,000 and costs were £36,000 and reports that profits were therefore £4,000. Explain why an economist might not agree that this represents a true picture of the shop's profit-ability.

Reference no: EM131923164

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