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3. Sam quit a $30,000-a-year job with a local heating and air conditioning firm to go into business for himself. After his first year in

3. Sam quit a $30,000-a-year job with a local heating and air conditioning firm to go into business for himself. After his first year in business, his accountant showed him an income statement that indicated Sams firm had a profit of $40,000. During this year Sam had drawn a salary of $20,000.

a. What was Sams accounting profit, his entrepreneurial profit, and his opportunity cost?

b. Explain the difference between accounting and entrepreneurial profit.

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