Q7. Economan has been infected by the free enterprise bug. He invests in some equipment to do research and publish results. He sets up and runs a firm that studies extraterrestrial genetic studies. For a one-year period the rent of the building is $20,000, the cost of two secretaries is $120,000 total, and the cost of utilities comes to $40,000. There is demand for the services and the revenues total $250,000 for the year. In order to run the business Economan gave up a chance to earn $110,000 in a job at the local Space Agency. In addition, he estimates that instead of investing in his business he could have put money in the bank and earned $5,000 interest. A) What is Economan’s accounting profit? B) What can you say about his profit in an economic perspective? (Meaning did he make an economic profit? Please explain.) C) Considering only the one year, was starting the business the best economic decision for Economan? (Please explain if he could have made more in an economic sense by using his time and resources in another way?)