1. Joe Smart gets sick and tired of his job at Microsoft (which, by the way, was paying him $100 000 a year). He decides to move to Midwest and open a car repair shop. He takes $100 000 from his savings that were earning 10% interest a year and uses this money to rent a garage and leasethe equipment. By the end of the year it appears that his expenses on labor were $50 000, utilities - $10 000 and supplies - $30 000. He also paid $30 000 for the garage rent and $25 000 for the equipment lease. The total revenue of his business was $200 000. What are the implicit and economic costs of this business (numbers only)?

Implicit:

Economic

What is the accounting profit? What is the economic profit? (numbers only)

Accounting: $

Economic: $