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What is the total economic profit (including opportunity cost) for the entrepreneur considering starting the business described here: Pat is considering leaving their job making
What is the total economic profit (including opportunity cost) for the entrepreneur considering starting the business described here: Pat is considering leaving their job making $100,000 a year to start a company. They expect revenue in the first year to be $200,000. They expect to pay their employees a total of $50,000. They expect COGS to be $10,000. Pat will also invest $20,000 of their own money to buy equipment. This $20,000 was in a savings account earning 5% per year in interest
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