Karolina owns a small diner, where she works full time in th…
Karolina owns a small diner, where she works full time in the kitchen. Her total revenue last year was $100,000, and her rent was $3,000 per month. She pays her one employee $2,000 per month, and the cost of ingredients averages $1,000 per month. Karolina could earn $50,000 per year as the manager of a competing diner nearby. Her economic profit last year was
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