Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Your aunt also estimates that she would sell $510,000 worth of merchendize.
a) Calculate your aunt's expected accounting profit based on the information provided above.
b) Calculate your aunt's expected profits based on the information provided above.
c) Should your aunt open the hardware store? Why or why not?