2. Construct a short narrative of how and why a single proprietorship may evolve into partnership and then finally into a corporation over time. Briefly explain the advantages and disadvantages at each stage and how the case can illustrate progress of free enterprise producers. (1.25%) Econ 1006 Exercise #1 (Total: 2.5%) 1. Rodriguez operates a variety store with an annual revenue of $480,000. Each year he pays $25,000 in rent for the store, $15,000 in business taxes, and $350,000 on products to sell. He estimates he could put $50,000 he has invested in the store into his friend's restaurant's business instead and earn an annual 20% profit on his funds. He also estimates that he could earn a total annual wage of $70,000 if he works somewhere other than the store. (1.25%) a. calculate the total explicit costs and total implicit costs of running the variety store. b. what is the accounting profit of the variety store? c. what is the economic profit? d. In what way is the economic profit superior to accounting profit as an indicator of the overall performance of this business? Given the advantages of economic profit as a performance indicator, explain why the concept of economic profit is not often used in accounting? and why a single proprietorship may evolve into