Answer:
Osvaldo and Pearl Tea Shop
His economic profits if he opens the ice cream store is:
= ($20,000).
Explanation:
a) Data and Calculations:
Annual salary as a soccer coach = $40,000
Rent income from a small store = $60,000
Expenses for the Pearl tea shop
Ingredients and labor = $80,000
Insurance = 20,000
Total expenses = $100,000
Revenue from the Pearl Tea Shop = $140,000
Less total expenses 100,000
Less opportunity cost (rent income) 60,000
Economic loss = $20,000