Answer:
Accounting loss of $5
Economic loss of $35
Explanation:
Accounting profit is the net of revenue and Explicit cost. Explicit costs are the cost which actually incurred or paid.
On the other hand the economic profit is the net of revenue, Explicit and Implicit costs. Implicit value is the opportunity costs of choosing the alternative.
Implicit cost = $30
Explicit cost = 90 + 115 = $205
Accounting Profit = Revenue - Explicit costs = $200 - $205 = ($5)
Economic Profit = Revenue - Explicit cost - Implicit cost = $200 - $205 - $30
Economic Profit = ($35)
