Grace owns and operates a small pottery firmgrace hires an


Grace owns and operates a small pottery firm.Grace hires an assistant at $12,000/year, pays annual rent of $5000 for her shop, and spends $20,000/year on materials. She has $40,000 of her own funds invested in equipment that could earn her $4000/year if invested in the stock market. She has been offered $20,000/year to work as a potter for one of her competitors.Grace would lose $3000/year in government assistance if she stays in business.Total annual revenue from pottery sales is $72,000. Calculate the accounting profit and the economic profit for Grace’s pottery business.Should Grace continue operating her own business? Why or why not?

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Business Economics: Grace owns and operates a small pottery firmgrace hires an
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