What costs and revenues do economists include when calculating profit that accountants don’t…

What costs and revenues do economists include when calculating profit that accountants don’t include? Give an example of each. Peggy-Sue’s cookies are the best in the world, or so I hear. She has been offered a job by Cookie Monster, Inc., to come to work at $125,000 per year. Currently, she is producing her own cookies, and she has revenues of $260,000 per year. Her costs are $40,000 for labor, $10,000 for rent, $35,000 for ingredients, and $5,000 for utilities. She has $100,000 of her own money invested in the operation, which, if she leaves, can be sold for $400,000 that she can invest at 1 percent per year. a. Calculate her accounting and economic profits. b. Advise her as to what she should do.

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