Ruth Brennan is evaluating two options. The first option is to open her own legal practice. Based on her business plan, she computed the following annual estimates using very conservative assumptions: - Total revenue = $320,000 - Purchases = $100,000 - Utility costs = $37,000 - Part-time Administrative Assistant = $45,000 Ruth will operate the business by herself. She will operate the business from a building that she owns. The building has been paid in full. The second option is to work for a law firm as a legal associate. Her annual salary would be $95,000. She could also rent her building for $74,000 per year. Compare and contrast the accounting profit and economic profit of each of the two options. (15 points) Which option is the most profitable for Ruth Brennan? (5 points) PART II (30 POINTS) Daffy's is a pet care company that recently increased the average price of its services by 5%. As a result, the number of customers dropped by 4%. Based on this information, what is the price elasticity of demand for services at Daffy's? How will this 5% increase of the average price of services impact total revenue at Daffy's? (10 points) Buffy's, a