Reference no: EM132479747

During a year of operation, a firm collects $550,000 in revenue and spends $200,000 on labor expense, raw materials, rent, and utilities. The firm's owner has provided $250,000 of her own money instead of investing the money and earning an 8% annual rate of return.

i). The opportunity cost of the owner's equity capital is $_______________.

ii). The explicit costs of using market-supplied resources are $______________. Total economic cost is $______________.

iii). The firm earns economic profit of $______________.

iv). The firm's accounting profit is $______________.