Economan has been infected by the free enterprise bug. He sets up a firm on extraterrestrial affairs. The rent of the building is $11,000, the cost of the two secretaries is $55,000, and the cost of electricity and gas comes to $15,000. There's a great demand for his information, and his total revenue amounts to $80,000. By working in the firm, though, Economan forfeits the $45,000 he could earn by working for the Friendly Space Agency and the $8,000 he could have earned as interest had he saved his funds instead of putting them in this business.
What is his profit or loss by an accountant's definitions?
Instructions: Round your answer to the nearest whole dollar and use a (-) if the number is negative.
Accounting profit is $.
What is his profit or loss by an economist's definitions?
Instructions: Round your answer to the nearest whole dollar and use a (-) if the number is negative.Economic profit is $.