Joe quits his computer programming job, where,he was earning a salary of $50,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $24,000 per year. In his first year of business he has the following expenses : salary paid to Himself, $40,000; rent,$0; other expenses, $25,000.Find the accounting cost and the economic cost associated with Joe's computer software business.
Joe quits his computer programming job, where,he was earning a salary of $50,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $24,000 per year. In his first year of business he has the following expenses : salary paid to Himself, $40,000; rent,$0; other expenses, $25,000.Find the accounting cost and the economic cost associated with Joe's computer software business.
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 14E
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Joe quits his computer programming job, where,he was earning a salary of $50,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $24,000 per year. In his first year of business he has the following expenses : salary paid to Himself, $40,000; rent,$0; other expenses, $25,000.Find the accounting cost and the economic cost associated with Joe's computer software business.
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