You are the owner and only employee of a company that writescomputer software th

Question

You are the owner and only employee of a company that writescomputer software that is used by gamblers to collect sports data.Last year you earned a total revenue of $90,000. Your costs forequipment, rent, and supplies were $60,000. To start this businessyou invested an amount of your own capital that could pay you areturn of $40,000 a year.
According to this, what are economic costs, accounting profitand economic profit??
Need detail, pls..Thank you so much!!
You are the owner and only employee of a company that writescomputer software that is used by gamblers to collect sports data.Last year you earned a total revenue of $90,000. Your costs forequipment, rent, and supplies were $60,000. To start this businessyou invested an amount of your own capital that could pay you areturn of $40,000 a year.
According to this, what are economic costs, accounting profitand economic profit??
Need detail, pls..Thank you so much!!

Explanation / Answer

If that is all the information you were given I would say Economic cost = 90 000, The equipment: 60 000+ your alternativecost: 40 000. You lose the 40 000 by starting this business. Accounting profit = 60 000. Economic profit = 0 Revenue = economic costs

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