Emily recently graduated with a B.A. in economics and was offered a job with a small but growing company for $38,000 per year. About the same time, Emily inherited $64,000. She decided to pass up the job and use her inheritance to purchase a bubble tea shop rather than put the money into a bond fund (as her uncle suggested), which would have paid 5 percent per year interest. Emily works full-time at her new business, and at the end of the year she had revenues of $82,000 and total explicit costs of $40,000.

a. What was Emily's accounting profit or loss for the year?

Accounting: $_______________ Profit or Loss

b. What was her economic profit or loss for the year?

Economic: $_____________ Profit or Loss