Suppose Ben Buys Out Jerry's Ownership in the Firm but Retains

question 191

Multiple Choice

Suppose Ben buys out Jerry's ownership in the firm but retains him as a salaried employee.If so,

• A)economic profit increases
• B)economic profit decreases
• C)there is no change in economic profit
• D)there is no change in accounting profit
• E)accounting profit increases

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