Naina runs a business that only sells hamburgers in a building she owns. Every month, they sell 6,000 hamburgers at $5 per hamburger. She spends $2 per hamburger on supplies (meat, lettuce, bread, etc.). She also pays John and Rajeev each $2500 per month to work at the restaurant. Finally, utilities cost $500 per month. Susana works full-time at the restaurant and keeps the accounting profits for herself. What is the accounting profit of the business? Susana could rent out her building for $5000 per month. She can also make $6000 per month as an accountant. Based on this, what is the economic profit of her business?
The accounting profit of the business:
"TR=p\\times Q =6000\\times5=30000"
"TC=FC+VC"
"FC=2\\times2500+500=5500"
"VC=AVC\\times Q=2\\times6000=12000"
"TC=5500+12000=17500"
"\\pi=30000-17500=12500"
The economic profit:
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