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The accompanying table outlines the explicit and implicit costs incurred by a small graphic design company in France that takes in annual revenues equal to
- The accompanying table outlines the explicit and implicit costs incurred by a small graphic design company in France that takes in annual revenues equal to $250,000. This is the company's cost info:
Explicit Costs
Office Rent
$2,000/month
Utilities
$200/month
Computers
$1,000/month
Labor
$5,000/month
Implicit Costs
Forgone Wages
$55,000/year
Forgone Interest on Initial Investment
$5,000/year
a. According to the company costs shown above, What would this company's accounting profits equal for a year? Explain
b. According to the company above, What would this company's economic profits equal for a year? Explain
c. According to the company above, What would we expect to happen in the long run for this market? Why? Explain
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