Menard quit his high-school teaching job, which paid $60,000 per year, to start a business preparing students for the SAT exam. His first year in business generated the following revenues and costs:
Revenues
$120,000
Supplies
30,000
Employees
15,000
Menard's salary
55,000
a. What is Menard's economic cost of SAT preparation?
b. What is Menard's accounting profit?
c. What is Menard's economic profit?
