Zippy is earning $40,000

Zippy is earning $40,000

Zippy is earning $40,000 per year working for Joe’s Car Repair. He also has savings of $200,000 on which he is earning 10% annual interest. He decides to leave Joe’s Car Repair to invest his savings in starting his own car repair business. In the first year, Zippy’s Speedy Car Repair earns revenues of $200,000 and has explicit costs of $150,000. Zippy’s economic profit (or loss) in the first year is $__

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