During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent and utilities.  The firm’s owner has provided $750,000 of her own money instead of investing the money and earning a 10 percent annual rate of return. The accounting costs of the firm are                                                          $______________________   The opportunity cost is                                                                            $______________________   Total economic costs are                                                                         $______________________   Accounting profits are                                                                              $______________________   Economic profits are                                                                                $______________________

During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent and utilities.  The firm’s owner has provided $750,000 of her own money instead of investing the money and earning a 10 percent annual rate of return.

The accounting costs of the firm are                                                          $______________________

The opportunity cost is                                                                            $______________________

Total economic costs are                                                                         $______________________

Accounting profits are                                                                              $______________________

Economic profits are                                                                                $______________________