Last year christine worked as a consultant. she hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. her total revenue for the year was $100,000. if christine hadn’t worked as a consultant, she would have worked at a real estate firm earning $40,000 a year. last year, christine's accounting profit was and her economic profit was

$49,000; $9,000

Explanation:

Given that,

Hired an administrative assistant = $15,000 per year

Rented office space (utilities included) = $3,000 per month

Total revenue for the year = $100,000

She would have worked at a real estate firm earning $40,000 a year

Accounting profit = Total revenue - explicit cost

                             = 100,000 - (15,000 + 3,000 × 12)

                               = 100,000 - 51,000

                              = $49,000

Economic profit = Total revenue - (explicit cost + implicit cost)

 = 100,000 - (51,000 + 40,000)

= 100,000 - 91,000

= $9,000