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Someone is telling you about the caf that they run. It is a family business. Both parents in the family work in the business full
Someone is telling you about the caf that they run. It is a family business. Both parents in the family work in the business full time and pay themselves competitive market salaries. The business makes a profit of $100,000 per year based on audited accounts. However, the family have their three teenage children work in the business at evenings and weekends for no wages. Is the caf making an economic profit of $100,000 per year? Explain.
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