Homework Help: economics

Posted by Allan on Monday, December 7, 2009 at 7:06pm.

The Midnight Hours, a local nightclub earned 100,000 in accounting profits last year, this year the owner, who had invested 1,000,000 in the club, decide to close the club. What can you say about the economic profit (and the rate of return) in the night-club business?

economics - economyst, Tuesday, December 8, 2009 at 9:11am
Take a shot, what do you think?

Hint: be sure to distinguish between economic profits and accounting profits.

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