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Selina is offered a job with a salary of $80,000, which she turns down to start her own business. She uses $30,000 of her own
Selina is offered a job with a salary of $80,000, which she turns down to start her own business. She uses $30,000 of her own savings to purchase capital, savings that had been earning $1,000 per year in interest. Over her first year in business, Selina collects total revenue of $190,000 and must cover explicit costs of $105,000. During her first year in business, Selina's accounting profit is _____, and her economic profit is _____. Assume that there is no capital depreciation. Question 5 options: $85,000; $4,000 $85,000; -$26,000 $110,000; -$26,000 $110,000; $4,000
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