During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expense, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and earning a 14 percent annual rate of return.

The explicit cost of the firm are $______. The implicit costs are $______. Total economic cost is $_______.

The firm earns economic profit of $_______.

The firm’s accounting profit is $________.

If the owners could earn 20 percent annually on the money they have invested in the firm, the economic profit on the firm would be _______ (when revenue is $175,000).