Part a; define accounting profit and economic profit. Make sure you indicate the components of each type of profit. Show the difference between the two types of profit (doing the above will make it easy to show the difference). Part b; describe the revenues and costs of starting your own business (even if you have never thought of starting a business). Will you use economic profit or accounting profit to decide whether to open your business? Use numbers for revenues and costs to show why you would open or not open a business.

Part a; describe the business you want to open ensuring you indicate the product or service, the ideal size of the business (employees, buildings, and equipment), licenses needed, etc. Part b; identify the market structure of your firm, i.e., perfect competition, monopolistic competition, monopoly, or oligopoly, the characteristics of the market structure you pick, and why you think the market structure you picked is correct for the business you want to open.