Question: Why does it always make economic sense for you to start a business if your business can make economic profit. How does economic profit differ

Why does it always make economic sense for you to start a business if your business can make economic profit. How does economic profit differ from accounting profit? Have you ever considered starting a business? If you were to start your own business someday, describe the revenues and costs you would consider (make sure you are describing economic profit in your analysis). please type answer

Step by Step Solution

★★★★★

3.40 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Lets break down the response into detailed sections to address each part of the question clearly 1 Economic Sense of Starting a Business with Economic Profit An economic profit indicates that a busine... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

You plan to start a business that sells waterproof sun block with a unique formula that reduces the damage of UVA radiation 30 percent more effectively than similar products on the market. You expect...

You decide to start a business that provides computer consulting advice for students in your residence hall. What would be an example of an explicit cost you would incur in operating this business?...

Why may it still make economic sense for the company to put on a coach for just one or two passengers, rather than turning them away?

According to your readings, and from what you have learned in Module 5, how could war stimulate the economy? Explain in detail, making sure to mention the impact government purchases have on Gross...

I am dyslexic so it takes much longer for me to do any reading, so any and all help is greatly appreciated. I will be sure to thumbs up! Please I need help... Report Layout Structure Table of...

You previously completed an assignment for me and forgot to answer the question below. 2. REVIEW THE CHAIRMAN?S LETTER TO THE SHAREHOLDERS. Summarize the major points made in the letter. Use complete...

Learning Objective 9.3 Describe How Managers Lead the Processes of Organizational Change 1.19 Eth cs Hidden Agendas in Organizational Change Rah Lewlne/Media Bakery sharing power is a popular choice...

Please help me with part B of the case, both the questions. ISSUES IN ACCOUNTING EDUCATION Vol. 28, No. 3 2013 pp. 637-652 American Accounting Association DOI: 10.2308/iace-50464 Dream Chocolate...

CASE STUDY Let us start by telling you a story. It happened on a typical day of teaching. Luisa was teaching an intensive course in finance to a group of Master of Science students from RENE. RENE is...

:10 Nicole's employer, Poe Corporation, provides her with an automobile allowance of $20,000 every other year. Her marginal tax rate is 32 percent. Answer the following questions relating to this...

Draw a line graph for each data set in Problems 36-39. Data set D Data set A: The annual wages of employees at a small accounting firm are given in thousands of dollars. 25 16 25 25 14 18 1 2 2 2...

A 20% ethylene glycol solution is flowing through a 4-nom sch 80 commercial steel pipe. The pipe is 350 ft long and is horizontal. The pressure drop through the pipe is 4 psi. The ethylene glycol is...

Figure P33.1 shows eight point sources of light, $a-h$, and two detectors, A and B. The point sources are evenly spaced, with $0.10 \mathrm{~m}$ between adjacent sources, and detector A shields...

Find the maximum energy (E) stored in the inductor of Example 10.17 (a) and show that it is greater than the sum of the maximum stored energies (E 1 and E 2 ) when each source is applied alone....

Consider the system shown in Fig. 9.54 in which a harmonic force acts on the mass $m$. Derive the condition under which the steady-state displacement of mass $m$ will be zero. Disc, mass M 000 R...

The JEM Company has been in operation for over 40 years and has 20,000 shares of $100 par-value common stock authorized, of which 12,000 shares have been issued. THe market value of the stock...

Express mass density in kg/m3 and weight density in lb/ft3. 1. Find the mass density of a chunk of rock of mass 215 g that displaces a volume of 75.0 cm3 of water. 2. A block of wood is 55.9 in. x...

In federal court and in many state courts, the pleading that a plaintiff files to initiate a civil lawsuit is known as a petition a cause of action a complaint a jumper cable

Duplicate Footballs, Inc., expects to sell 15,000 balls this year. The balls sell for $110 each and have a variable cost per unit of $80. Fixed costs, including depreciation and amortization, are...

Fresno Machine Shop has decided to acquire a new machine that costs $3,000. The machine will be worthless after three years. Only straight-line depreciation is allowed by the IRS for this type of...

Dravid, Inc., is currently evaluating three projects that are independent. The cost of funds can be either 13.6 percent or 14.8 percent depending on their financing plan. All three projects cost the...

A customer has recently tightened tire design specification for a part your company supplies. Tire design specification is now much tighter than the machine being used for the job is capable of....

North Shore University Hospital in New York has initiated some improvement projects in order to accommodate the increasing number of patients. One project involved reducing the turnaround time of...

Why are x and R charts used together?