Problem
A person inherits £50,000 and uses it to buy a shop. At the end of the first financial year an accountant finds that sales receipts were £40,000 and costs were £36,000 and reports that profits were therefore £4,000. Explain why an economist might not agree that this represents a true picture of the shop's profit-ability.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.