Jacob operates a mobile hotdog truck near an amusement park. A hotdog is sold for S3.00.Jacob has rented the truck for $

[answerhappygod]

Jacob operates a mobile hotdog truck near an amusement park. A
hotdog is sold for S3.00.Jacob has rented the truck for $40,000 per
year and cooks and sells his hotdogs from the truck. The
ingredients to make one hotdogcostshim$0.80pe hotdog. Jacob
estimates that he could earn a wage of $5000 per year if he found
alternative employment.
Assume that Jacob sells 35.000 hotdogs this year .and given above
are all the costs relating to his hotdog business.
a) what is Jacob's accounting profit for the year?
b) what is Jacob's economic profit for the year?
c) Discuss what Jacob should do in the short run and long run.
Give clear economic reason for your answer.
d) what creates economies of scale for a firm? Explain giving
examples.