A person starts his own business after quitting his job in which he made $75,000. Expenses include $100,000 for wages and salaries, which includes a wage for the owner of $75,000, utilities of $5000, equipment of $50,000, and materials of $40,000. If revenues are $200,000, his accounting and economic profits are respectively

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Accounting profit is calculated as total revenue minus explicit costs, which is $200,000 - ($100,000 + $5,000 + $50,000 + $40,000) = $5,000. Economic profit also considers the opportunity cost of the owner's foregone salary of $75,000, so it is $5,000 - $75,000 = -$70,000. However, the question seems to have an error in the options, as none match this calculation.

A Person Starts His Own Business After Quitting His Job