b) Tom runs a small pizza shop. He hires one helper at $17,000 per year, pays annual rent of $5,000 for his business, an

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B Tom Runs A Small Pizza Shop He Hires One Helper At 17 000 Per Year Pays Annual Rent Of 5 000 For His Business An 1 (75.93 KiB) Viewed 26 times

b) Tom runs a small pizza shop. He hires one helper at $17,000 per year, pays annual rent of $5,000 for his business, and spends $16,000 per year on raw materials. He uses his savings to purchase equipment. The savings could earn him $2,000 per year if alternatively invested. He has been offered $24,000 per year to work as a janitor. Total annual revenue from pizza sales is $75,000. The explicit costs of the firm are $ The implicit costs of the firm are $ The accounting profit is $ The opportunity cost of running this business is $ The economic profit is $