You have a small business that makes $50,000 accounting and economic profit for you. As a disabled person, you must work at home and you did not have other opportunities until your neighbor offers you a job you like equally well for $50,000 and you can do it at home. This means

A. both your accounting and economic profit have gone up.
B. your economic profit has gone down and your accounting profit has stayed the same.
C. both your accounting and economic profit have gone down.
D. your economic profit has gone down and your accounting profit has gone up.


Answer: B

Economics

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