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Suppose That You Open Your Own Business and Earn an Accounting

question 63

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Suppose that you open your own business and earn an accounting profit of $35,000 per year. When you started your business, you left a job that paid you a $30,000 salary annually. Also, suppose that you invested $70,000 of your own funds to start up your business. If the normal rate of return on capital is 10 percent, your economic profit is


Definitions:

Genetic Tendency

A predisposition or likelihood of developing certain traits, behaviors, or conditions based on one's genetic makeup.

Self-Control

Willpower; the ability to control one’s own behavior.

Developing Routines

The process of establishing a series of actions regularly followed, aimed at improving efficiency or performance.

Mindfulness Meditation

A mental practice that involves focusing one's mind on the present moment, acknowledging and accepting feelings, thoughts, and bodily sensations, used as a therapeutic technique.

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