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help me to solve the following question Asap . GBP has initial investment of SR40,000. If it were to be invested on stocks, the market
help me to solve the following question Asap .
GBP has initial investment of SR40,000. If it were to be invested on stocks, the market interest rate would be 0.10 (10%). However, the industry uses capital and labor as inputs and sells 2, 500 shoes per month at SR20 market price. If the cost of the shoes is SR 25,000 and labor cost is 15,000. Calculate the following:
-Total revenue.
-Opportunity cost of capital
- Economic profit
- Accounting profit
- From your answer in (c), is the business profitable from the economic profit point of view? Explain your answer.
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