The accompanying table outlines the explicit and implicit costs incurred by a small graphic design company that takes inannualrevenues equal to $250,000 Based on this information, answer the following 3 questions show your work What would this company's accounting profits equal for a year What would this company's economic profits equal for a year Create an accounting and economic profits differ If so why, if so why not Item Cost Office Rent $2,000 month Utilities $200 month Computers $1,000 month Labor $5,000 month Forgone Wages $55,000 year Foregone Interest on Initial Investment $5,000 year

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Question: The accompanying table outlines the explicit and implicit costs incurred by a small graphic design company that takes inannualrevenues equal to $250,000. Based on this

The accompanying table outlines the explicit and implicit costs incurred by a small graphic design company that takes inannualrevenues equal to $250,000. Based on this information, answer the following 3 questions-- show your work.

What would this company's accounting profits equal for a year?
What would this company's economic profits equal for a year?
Create an accounting and economic profits differ? If so why, if so why not?

Item Cost Office Rent $2,000/month Utilities $200/month Computers $1,000/month Labor $5,000/month Forgone Wages $55,000/year Foregone Interest on Initial Investment $5,000/year

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