Emily recently graduated with a B.A. in economics and was offered a job with a small but growing

company for $38 400 per year. About the same time, Emily inherited $60 000. 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 $81 000 and total explicit costs of $42 000.

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

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

See the attached file and do the questions. You can write it out on paper and take a picture and submit a picture of your Solutions. Any identical work between two students will get a zero mark.