Answer:
7,000 economic loss
Explanation:
accounting profit - opportunity cost = economic profit
50,000 company earnings - 35,000 - 22,000 opportunity cost
7,000 economic loss
She currently is putting his labor and capital to receive 50,000
if she offers his labor to another company it will receive 35,000
if she offers his capital to another project it will yield 22,000
The total opportunity cost is 57,000
She is losing by keeping his company. It should take the job and, put his capital somewhere else.
