Continuing from Exercise 7.1, the firms factory sits on land owned by the firm that it could
Question:
Continuing from Exercise 7.1, the firm’s factory sits on land owned by the firm that it could rent for $30,000 per year. What was the firm’s economic profit last year?
Exercise 7.1
A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. What was the firm’s accounting profit?
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