Question 3
Suppose Professor Donald spends $5,000 per year on tax supplies and Cube Smart storage space. He recently received two job offers from a XYZ marketing firm- one offer were for $ 60,000 per year, and the other was for $50,000. However, she turned both jobs down to continue her tax preparation business and storage firm. If Donald sells 10 paintings per year at a price of $9,000 each:
What is her total revenue? Explain
What are her accounting profits? Show work
What are her economic profits? Show work
Which type of profit ( accounting or economic profit) reflects the best use of her time? Explain
