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Issue:

Business

 

Written by:

Ronald B

 

Date added:

September 19, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

8 / 2083

 

Was viewed:

8815 times

 

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Essay content:

If this person runs a software company, and the company earns $1,000,000, it must subtract incurred supplies/expenses of $850,000. The owner is left with $150,000 accounting profit. However, when one subtracts the opportunity cost of the income the owner would have earned from an employer ($200k), the true economic profit remaining is - $ 50k...
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The owner is left with $150,000 accounting profit. However, when one subtracts the opportunity cost of the income the owner would have earned from an employer ($200k), the true economic profit remaining is - $ 50k. Therefore owning a software company is not profitable, and leaves the owner in the negative for an actual salary amount...
displayed 300 characters

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