Entry, Exit, and Long Run Profitability $$ End of Chapter Problem A year ago, you graduated from college and decided to open your own computer software company. Over the past year, your firm generated $$500,000$ in revenue. You hired two software engineers and paid each of them $$150,000$ over the past year. You also purchased computer equipment that cost a total of $$30,000.$ To save money, you decided to use the basement of your house for the business. Previously, you had rented this space to a tenant for $$6,000$ per year. Instead of opening your own business, you could have gone to work for Microsoft and earned $$200,000$ over the past year. a$.$ What were your accounting profits of your firm over the past year? $ $170000$ b$.$ What were the economic profits of your firm over the past year? $ $36000$ Incorrect c$.$ Given this information, you should not have launched your own business.