During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expense, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and earning a 14 percent annual rate of return.

a) The explicit costs of the firm are $. The implicit costs are $. Total economic cost is $.

b) The firm earns economic profit is $

c) The firm’s accounting profit is $.

d) If the owners could earn 20 percent annually on money they have invested in the firm, the economic profit of the firm would be…………… (when revenue is $175,000).