Accounting and Economic Profit

Accounting and Economic Profit - " $& 01&0&...

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II. Accounting vs. Economic Profits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Unformatted text preview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This note was uploaded on 02/24/2011 for the course ECON 101 taught by Professor Fon during the Spring '06 term at GWU.

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Accounting and Economic Profit - " $& 01&0&...

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