Mercy Hospital provides healthcare at subsidized prices and is so popular that patients wait in long queues.Revenue is $75 million a year, while the cost of providing service is $100 million a year.A government subsidy covers the difference.Some critics argue that, since Mercy Hospital is losing money, it should be shut down.The management of Mercy Hospital argues that the long waiting times justify a larger government subsidy to expand staff and facilities.

(a)What is Mercy Hospital's economic profit?

(b)Do you agree that Mercy Hospital should be shut down?