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Consider two firms; identical in every way, except that firm A borrowed $1 billion to begin operations whereas firm B was started by a billionaire

Consider two firms; identical in every way, except that firm A borrowed $1 billion to begin operations whereas firm B was started by a billionaire who simply put up $1 billion of his own.TFU and explain: Firm B will earn higher economic profits than firm A since it does not have to make interest payments.

Take into consideration any fallacys such as sunk cost etc?

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