Question
Sarah quits her job as an accountant/consultant for TaxAct.com and starts her own accounting/tax business. She was earning $75,000 at TaxAct.com. In her first year
Sarah quits her job as an accountant/consultant for TaxAct.com and starts her own accounting/tax business. She was earning $75,000 at TaxAct.com. In her first year she completes 1000 tax returns/consulting projects for which she charges an average price of $200. To start her own business she takes $100,000 out of her savings account where she was earning a 5% return and uses the money to buy a copy machine, desks, chairs, and other office equipment. Sarah hires two workers and pays them $35,000 each. In addition, she has utility and paper costs of $12,000. What are Sarah\'s economic profits?
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