.a. Martha quits her job as a baker in a bakery and starts her own bakery...

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.a. Martha quits her job as a baker in a bakery and starts her own bakery and confectionary shop. She was earning $4000 per month in the bakery. She starts her own bakery by renting a premise for $ 1500 per month and putting invests her own money of $ 10,000. The going interest rate for bank deposit is 2% p.a. Her total input costs works out to $ 3000 per month. What are her accounting costs for a year? What would be her economic cost for the same period? What is the difference between the two costs? .a. Martha quits her job as a baker in a bakery and starts her own bakery and confectionary shop. She was earning $4000 per month in the bakery. She starts her own bakery by renting a premise for $ 1500 per month and putting invests her own money of $ 10,000. The going interest rate for bank deposit is 2% p.a. Her total input costs works out to $ 3000 per month. What are her accounting costs for a year? What would be her economic cost for the same period? What is the difference between the two costs?

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Accounting costs 4500 Economic Costs 851667 Difference 401667 Economic costs ... View the full answer