Joe quits his computer programming job, where he was earning a salary of $ per year, to start his own computer software business in a building that he owns and was previously renting out for $ per year. In his first year of business he has the following expenses: salary paid to himself, $; rent, $0; and other expenses, $. Find the accounting cost and the economic cost associated with Joe's computer software business. (Enter numeric responses using an integer.) The accounting cost of Joe's business is $ 107000- nothing. (Enter your response as an integer.)

Joe quits his computer programming job, where he was earning a salary of $50,000year, to start his own computer software business in a building that he owns and was previously renting out for $24,000/year. In his first year of business he has the following expenses: salary to himself, $40,000; rent, $0; other expenses, $25,000.

Find the accounting cost and economic cost associated with Joe's computer software business.

There are two types of costs

1. Economic cost or Implicit cost or opportunity cost : Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. It is used in calculating economic profit

By starting his business, joe is forgoing his income and the rent he could have earned on his building

$50,000+ $24,000 = 74,000

2. Explicit cost : It includes the amount expended in running the business. It is used in calculating accounting profit

They include rent , salary and cost of raw materials

40,000+ 25,000 = 65,000