Answer:
The Business profit = $30,000
Economic profit = Loss of $10,000
Explanation:
Data provided in the question:
Cost of land purchased = $100,000
Salary = $30,000
Revenue generated = $30,000
Discount rate = 10%
Now,
The Business profit = Net revenue generated
i.e
The Business profit = $30,000
Economic profit
= Business profit - Interest received on land - Implicit cost (i.e the salary)
or
Economic profit = $30,000 - 10% of $100,000 - $30,000
= - $10,000
here, the negative sign of the value of economic profit depicts the loss i.e there is loss of $10,000
