A year ago, Jaime left his investment banking job, in which…
A year ago, Jaime left his investment banking job, in which he earned $150,000 per year, to start a fintech company that provides real-time stock-picking consulting. Over the past year, during which his company generated $750,000 in revenue, Jaime employed two software engineers and two financial analysts, paying each $150,000. To save money, Jaime runs his business on the upper floor of his house, a space he previously rented out for $10,000 per year. Jaime’s economic profit is _____. He therefore _____ have launched the business.