7.2. A grocery shop is owned by Mr. Moore and has the following statement of revenues and costs:

Revenues $250,000 Supplies $25,000 Electricity $6,000 Employee salaries $75,000 Mr. Moore’s salary $80,000 Mr. Moore always has the option of closing down his shop and renting out the land for $100,000. Also, Mr.

Moore himself has job offers at a local supermarket at a salary of $95,000 and at a nearby restaurant at $65,000.

He can only work one job, though. What are the shop’s accounting costs? What are Mr. Moore’s economic costs?

Should Mr. Moore shut down his shop?