What is his economic profit

Reference no: EM13712029

Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day he quits his job, sells $100,000 worth of bonds that had been earning 5 percent per year, and uses the funds to open a book store. At the end of the year, he shows an accounting profit of $90,000 on his income tax return. What is his economic profit?

Reference no: EM13712029

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