Last year, jarod left a job that pays $60,000 to run his own bike-repair shop. jarod's shop charges $65 for a repair, and last year the shop performed 3,000 repairs. jarod's production costs for the year included rent, wages, and equipment. jarod spent $50,000 on rent and $100,000 on wages for his employees. jarod keeps whatever profit the shop earns but does not pay himself an official wage. jarod used $20,000 of his savings to buy a machine for the business. his savings were earning an annual interest rate of 5 percent. instructions: round your answers to the nearest dollar and include a negative sign if appropriate. a. what is jarod's annual accounting profit? b. what is jarod's annual economic profit?

(a) $45,000

(b) -$16,000

Explanation:

Accounting profits = Total revenue - Total costs

                               = ($65 × 3,000) - (100,000 + 50,000)

                               = $195,000 - $150,000

                               = $45,000

Economic profits = Accounting profits - Opportunity cost

                            = $45,000 - [$60,000 + (5% × $20,000)]

                            = $45,000 - [$60,000 + $1,000]

                            = $45,000 - $61,000

                            = -$16,000                                  

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; the landlord can sue the renter,and the renter loses the security deposit;