Consider the following example:

Jordancurrently works for a corporate law firm. She is considering opening her own independent legal practice, where she expects to earn $290,000per year once she gets established. To run herown firm, she will have to give up her current job with a salary of $125,000and will incur the following annual expenses:

Rent	20,340
Salary - Legal Assistant	20,570
Computer Software License	150
Office Supplies	650
Internet Subscription	1,500

Part 1: How muchare Jordan's explicit costs?

Part 2: How muchis Jordan's accounting profit?

Part 3: How muchare Jordan's implicit costs?

Part 4: How muchis Jordan's economic profit?

Assume Jordan values her leisure time at $70/hour, and starting her own firm would require her to put in 16 more hours than at the corporate firm:

Part 5: What is the change in Jordan's explicit costs?

Part 6: What is the change in Jordan's implicit costs?