Question
Scott owns and operates a small business that provides economic consulting services. During the year he spends 55000 on travel to clients and other expenses,
Scott owns and operates a small business that provides economic consulting services. During the year he spends 55000 on travel to clients and other expenses, and the computer that he owns depreciates by 2000. If he had not used his money to buy computer, he could earn yearly interests of 100. Scotts total revenue for the year is 100000. Instead of working as a consultant, he could teach economics at the local university and make a salary of 50000. Determine Scotts accounting and economic profit. Based on your calculation, what is your advice for Scott
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