1. You own and operate a bike store. Each year, you receive revenue of $250,000 from your bike sales, and it costs you $150,000 to obtain the bikes. In addition, you pay $40,000 for electricity, taxes, and other expenses per year. Instead of running the bike store, you could become an accountant and receive a yearly salary of $50,000. A large clothing retail chain wants to expand and offers to rent the store from you for $40,000 per year.

a. What is your accounting profit?

b. What is your economic profit?

c. Should you continue to run your own bike shop?