Jill resigns from herjob, at which she was earning $50,000 per year, and uses $100,000 in savings, on which she was earning 5% annual interest, to start a business. In the first year, she earns revenue of $150,000 and her costs are as follows: Rent $25,000 Utilities $12,000 Wages $30,000 Materials $20,000 a. (5 points) Calculate Jill’s accounting profits. b. (5 points) Calculate Jill’s economic profits.
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