Posted: December 11th, 2021

Jaynet spends $50,000 per year on painting supplies

Jaynet spends $50,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm – one offer was for $95,000 per year, and the other was for $115,000. However, she turned both jobs down to continue a painting career. If Jaynet sells 25 paintings per year at a price of $8,000 each:

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a. What are her accounting profits?
b. What are her economic profits?

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