year to rent the location and buy the merchandise. In addition, he would have to quit his $63000 per year day job. Tim estimates he can sell $315600 worth of garments in a year. a. What will be the accounting profit and economic profit for Tim? b. If you are an economist, should you suggest opening the store? Why?

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A:

Q: Calculate explicit cost given:- Accounting profit = $6600 Total revenue= $10,000

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Q: How is it possible to have positive accounting profit and negative economic profit concurrently?

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A: The answer is as follows:-

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