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During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent and utilities. The firm's owner
During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent and utilities. The firm's owner has provided $750,000 of her own money instead of investing the money and earning a 10 percent annual rate of return. What is:
The accounting costs of the firm
The opportunity cost
Total economic costs
Accounting profits
Economic profits
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