1. Zero economic profit for a firm means _____. (Check all that apply.)

a- it receives no normal profit

b- its total revenue equal its total cost

c -its accounting profit is also zero

d- its accounting profit equals its implicit costs

2. Erin quit her job, where she earned $90,000 per year, to start her own economic consulting firm. She invested $60,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm's costs were $50,000 for rent on the office building, $300,000 for wages and salaries of employees, and $10,000 for supplies and utilities. The market value of the firm's assets at the end of the year was $48,000. During the year, the firm billed its clients for 2,400 hours at $200 per hour. The typical rate of return on financial investments in the economy was 5%.

In this scenario, Erin's accounting costs were $_____

Her cost of capital was$____

Her total costs were $____

Her economic profit was $_____

And her normal profit was $____

3. In the scenario above, if Erin earned $110,000 per year at her previous job, her consulting firm's economic (profit/loss)

_____would be $________