1. Your sister is thinking about investing in a new business venture. Define the concept of implicit costs (hidden opportunity costs) for her and explain to her why it is important to understand these costs before she invests. 2. Do you think it correct to use economic profits as opposed to accounting profits when judging the success or failure of a business? Explain your reasons. 3. Businesses in the beachball market are currently earning zero economic profits. A heat wave strikes and demand for beachballs skyrockets, so a shortage develops, driving up beachball prices. Using economic profits as the key, use a demand and supply graph to explain all the choices that will be made before the beachball market once again returns to long-run market equilibrium with zero economic profits. 4. You earn a good salary, but you hate your boss. You develop a plan to start your own business that projects economic profits of $5000 at the end of the first year. But just as you are about to go ahead with your new business, you are offered a job for $15 000 more than you were earning before. a. How does that change your projected economic profits? b. Would it change your decision to start your new business? Why or why not? 5. Abdul operates his own business and pays himself a salary of $30,000 per year. He refused a job that pays $35,000 per year. What is the opportunity cost of Abdul's time in the business? Part 2 A. $35,000 B. $30,000 C. $5,000 D $65,000 (Ctrl)