A and b are painters and have the exact same cost


A and B are painters and have the exact same cost structures except that A paints in a house he owns but that he could rent out for $4,000/year, while B paints in a house that he rents from Ithaca Realty for $4,000/year. Both A and B would become photographers and earn salaries of $50,000/year if they quit painting for themselves. Assume that the painting business is a perfectly competitive industry. Which one of the following is true?

A. A earns more accounting profit and more economic profit than B does.

B. A earns the same accounting profit and more economic profit as B does.

C. A earns the same accounting profit and the same economic profit as B does.

D. A earns more accounting profit and the same economic profit as B does.

E. A earns less accounting profit and less economic profit than B does.

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Business Economics: A and b are painters and have the exact same cost
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