1. 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. This is the company's cost info:

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. According to the company costs shown above, What would this company's accounting profits equal for a year? Explain

b. According to the company above, What would this company's economic profits equal for a year? Explain

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