Mary owns her own business and works full time in the store without paying herself a salary. She has $20,000 of her own money invested in the store that she withdrew from her savings account, which earned 10 percent interest. She was offered a job last year making $28,000 per year but turned it down. If Mary's accounting statements show revenues of $100,000 and accounting costs of $60,000, then Mary's

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Accounting profit is revenues minus accounting costs, which is $100,000 - $60,000 = $40,000. Economic profit is accounting profit minus implicit costs, which are the costs of the resources that the business owner provides to the business. In this case, the implicit costs are the interest that Mary could have earned on her $20,000 investment in the store, which is $20,000 * 10% = $2,000, and the salary that Mary could have earned if she had taken the job, which is $28,000. Therefore, Mary's economic profit is $40,000 - $2,000 - $28,000 = $10,000.

Mary Owns Her Own Business and Works Full Time in the Store