Timmy owns a shoe store that generates monthly revenue of $47,000. Timmy's costs associated with rent, materials and labor equals $39,055 per month. Timmy could work as a turkey farmer instead of owning a shoe store which would generate $11,039 in total revenue per month. Timmy's accounting profit equals _____________ while his economic profit equals ___________.

Respuesta :

Answer:

Timmy's accounting profit equals $7945 while his economic profit equals $3094

Explanation:

Accounting profit= $47000- $39055= $7945

Economic profit= $11,039 - $7945= $3094

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