Sarah's accountant tells her that she made a profit of $43,002 running a pottery studio in Orlando. Sarah's husband, an economist, claims Sarah lost $43,002 running her pottery studio. This means her husband is claiming that she incurred _____ in _____ costs.

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Sarah's accountant tells her that she made a profit of $43,002 running a pottery studio in Orlando. This means that her total revenue was $43,002 more than her total costs. Her husband, an economist, claims Sarah lost $43,002 running her pottery studio. This means that her total costs were $43,002 more than her total revenue. The difference between these two amounts is $86,004, which is the amount of implicit costs that Sarah incurred.

Sarah's Accountant Tells Her That She Made a Profit of $43,002