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Question - 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.
Required -
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?
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