Calculation economic profit and the accounting profit


Zach withdrew $400,000 out of his personal savings account and used it to start his new cookie business. The bank account pays 3 percent interest per year. During the first year of his business, Zach sold 6,000 boxes of cookies for $2.50 per box. Also during the first year, the cookie business made monetary outlays of $9,000. You may assume that there is no opportunity cost to Zach's time. what is the economic profit and the accounting profit?

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Macroeconomics: Calculation economic profit and the accounting profit
Reference No:- TGS069678

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