1. Mr. Mustafa has a degree in Analytical Economics from University of Malaya. He was offered to work as an executive with a private company with the salary of RM1,250 per month. However, he decided to open a shop selling electric and electronics parts by withdrawing his savings of RM50,000 to be used as the capital. Rate of returns on his savings is 10% per annum. He also rented a shop house with rental of RM600 per month, and hired two (2) workers with a wage of RM700 per month. Besides that, Mr. Mustafa spent RM40,000 in that particular year to purchase all the necessary equipment needed for his business. If the total revenue he obtained for that year is RM120,000 minus the explicit cost accounting to RM64,000, hence Mr. Mustafa gained an accounting profit of RM56,000 per annum. As an economist, Mr. Mustafa has to also take into account the implicit costs in calculating his business profit. In this exercise, implicit costs refer to the opportunity costs since Mr. Mustafa had turned down the job as an executive, with a salary of RM15,000 per annum. a. Compute Mustafa's accounting profits. (5) b. Compute Mustafa's economic profits