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Question #9[ cloze] (6%) After years working for a large It firm, Peng has decided...

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Question #9[ cloze] (6%) After years working for a large It firm, Peng has decided to start his own business. He opened a computer office where he fixes local customers' software issues. His previous employer has offered to re-hire him because they are missing him a lot. Unable to make up his mind on his own, he is asking you for help. Peng provides you with the following information. In his previous job, he was earning $110,000. Last year, he had sales worth $210,000. He paid $60,000 in rent. He bought new computers for $8,000. He also paid $400 per month in utilities. To pay for the computers, he borrowed $5,000 from a bank and paid for the difference by withdrawing from his saving account. The bank charges him 4% interest rate. He estimates the current values of the computers to be $2,800. To the best of his knowledge, people in his industry earn $45,000 of normal profit. a. What is Peng's total revenue? b. What is Peng's total explicit cost? c. What is Peng's accounting profit? d. What is Peng's total implicit cost? e. What is Peng's economic profit

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