John quits his computer programming job, where he was earning a salary of $5,000 per month, to start his own computer software business store in a building that he owns and was previously renting out for $3,000 per month. In his first year of business he has the total expenses in a year as following: mortgage $20,000, salary paid to herself, $40,000; rent, $1000; other expenses, $20,000.

Q: Find the accounting cost, the economic cost associated with Johns business.

3. Draw a picture to show consumer surplus and producer surplus.