Question

2. Adam is the owner of a small grocery store in a busy section of Boulder,
Colorado. Adam's annual revenue is $200,000 and his total explicit cost
(Adam pays himself an annual salary of $30,000) is $180,000 per year.
A supermarket chain wants to hire Adam as its general manager for $60,000
per year.
+
a. What is the opportunity cost to Adam of owning and managing
the grocery store?
b. What is Adam's accounting profit?
c. What is Adam's economic profit

Answer 1

Answer:

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