Answer:
accounting profit 51,000
economic loss 3,000
Explanation:
the accounting profit will consider only the explicit cost
revenue 100,000
rent expense (4,000)
salaries expense (40,000)
utilities expense<u> (5,000) </u>
net income 51,000
while, economic profit will consider the opportunity cost of each factor too.
accounting income 51,000
opportunity cost for wages factor (50,000)
opportunity cost for capital facotr<u> (4,000)</u>
economic loss (3,000)