Peter’s father gave him a construction company with an asset worth $400,000 Peter proudly told to some of his fellow directors that his revenues were typically $35,000 per month, while his operating cost for fuel was $8,000 and maintenance $5,000 per month The estimated depreciation was $10,000 per month An office space similar to Peter ‘s office space can be rented for $15,000 per month If Peter was working for one of his competing construction companies, he would have earned $5,000 per month

i List the items that Peter would consider to compute his explicit costs

ii List the items that Peter would consider to compute his implicit costs

iii Compute Peter’s monthly total economic cost

iv Should Peter continue his business? Support your answer with calculations