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Amber has opened a coffee shop for many years on a piece of land that she has also owned. She has also made accounting profits
Amber has opened a coffee shop for many years on a piece of land that she has also owned. She has also made accounting profits from the coffee shop. This year, rents in the area rose considerably, and Amber responded by deciding to sell the land and the coffee shop to an apartment builder. What happened to her accounting profit and her economic profit due to the increase in rent? How can you explain Amber's decision to sell her business? Explain.
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