An individual leaves a college faculty, where she was earning $60,000 a year, to begin a new venture.
She invests her savings of $45,000, which were earning 6 percent annually. She then spends $20,000 renting office equipment, hires two students at 20,000 a year each, rents office space for $12,000, and has other variable expenses of $35,000. At the end of the year, her revenues are $230,000.
1.Her accounting profit is $
2.Her economic profit is $