Question: Question: The accompanying table outlines the explicit and implicit costs incurred by a small graphic design company in France that takes in annual revenues equal

Question: The accompanying table outlines the explicit and implicit costs incurred by a small graphic design company in France that takes in annual revenues equal to $250,000.

Explicit Costs

Office Rent $2,000/month

Utilities. $200/month

Computers. $1,000/month

Labor $5,000/month

Implicit Costs

Forgone Wages $55,000/year

Forgone Interest on Initial Investment $5,000/year

a. What would this company's accounting profits equal for a year? Explain

b. What would this company's economic profits equal for a year? Explain

c. What would we expect to happen in the long run for this market? Why? Explain

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