Answer:
Accounting Cost = $100,000
Economic Cost = $114,000
Explanation:
The computation of accounting and economic cost is shown below:-
Accounting Cost = Salary of Jill + Labor costs + Insurance and mortgage payment
= $30,000 + $60,000 + $10,000
= $100,000
Economic Cost = Accounting Cost + Investment return lost + Loss in Salary ($50,000 - $30,000) + Loss in Rent ($20,000 - $10,000)
= $100,000 + $4,000 + $10,000
= $114,000