The accompanying table outlines the explicit and implicit costs incurred by a small graphic design company that takes inannualrevenues equal to $250,000. Based on this information, answer the following 3 questions-- show your work.

1. What would this company's accounting profits equal for a year?
2. What would this company's economic profits equal for a year?
3. Create an accounting and economic profits differ? If so why, if so why not?

Item Cost Office Rent $2,000/month Utilities $200/month Computers $1,000/month Labor $5,000/month Forgone Wages $55,000/year Foregone Interest on Initial Investment $5,000/year