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Gerald was offered a spot in the family business, where he would have earned \$100,000 per year. Instead, he has gone into business for himself, selling coffee mugs.

Every year, he is able to sell 50,000 mugs at a price of \$4 apiece. To make the mugs, he bears some costs:
\$60,000 in labor costs
\$10,000 in machine repair
\$40,000 to pay licencing fees to make mugs for popular cartoon characters

What is the accounting profit that Gerald earns from his business?
Select Option \$200,000\$100,000\$90,000-\$10,000


What is the economic profit that Gerald earns from his business?
Select Option \$200,000\$100,000\$90,000-\$10,000
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