Until recently, Mark worked a financial advisor, earning $60,000 annually. Then he inherited a piece of commercial real estate that had been renting for $12,000 annually. Mark decided to leave his job and operate a Peruvian restaurant in the space he inherited. At the end of the first year, his books showed total revenues of $290,000, and paid a total cost of $200,000 for food, utilities, cooks, and other supplies: Show all your work to support your answer for each of the following:
A) Calculate his explicit costs:
B) Calculate his implicit costs.
C) Calculate his accounting profits.
D) Calculate his economic profits.
