Zach took $100,000 out of the bank and used it to start his new cookie business. The bank account pays 5 percent interest per year. During the first year of his business, Zach sold 12,000 boxes of cookies for $7 per box. Also, during the first year, the cookie business incurred costs amounting to $30,000.

What was zach's accounting profit for the year?

What was zach's economic profit for the year?

Should zach continue with cookie business?

What are opportunity costs? How do explicit and implicit costs relate to opportunity costs?