Suppose that a small hairstyling salon had revenues of $150,000 in a given year. The owner spent $10,000 on utilities, $60,000 on supplies (shampoo, conditioner, hair coloring and other chemicals, etc.), and $50,000 on equipment (mirrors, chairs, scissors, curling irons, etc.), including maintenance. The owner could have earned $50,000 working at another salon. What is the accounting profit for the hairstyling salon? What is the economic profit for the hairstyling salon?

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Solution Revenue 150000 Supplies cost 60000 Equipment cost 8 50000 so Explic... View the full answer