Determining the accounting profit and economic profit


Question: Marquis quits his job as a security consultant, which paid an annual salary of $65,000, and opened up his own security company. He used $40,000 of a mutual fund that paid a 4% annual interest rate to buy a truck. In his first year of operation, he spent $100,000 on equipment and licensing and earned total revenue of $210,000. Marquis' accounting profit is and his economic profit is?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Determining the accounting profit and economic profit
Reference No:- TGS03215166

Expected delivery within 24 Hours