Fred's Bar and Grill Hires You to Determine the Company's

Essay

Fred's Bar and Grill hires you to determine the company's status. The data below provides information on the company's annual costs and revenues.
Fred spends at least 40 hours a week at his place of business. If he closed the bar, he could work for his competitor and earn $30,000 per year. He also owns the building that houses the bar and could rent it out for $24,000 per year if he closes his business. Calculate the economic cost and economic profit for Fred's Bar and Grill.