Victor is the recipient of $1 million from a lawsuit. victor decides to use the money to purchase a small business in florida. his business operates in a perfectly competitive industry. if victor would have invested the $1 million in a risk-free bond fund, he could have earned $100,000 each year. after he bought the small business, victor quit his job as a market analyst with research, inc., where he used to earn $75,000 per year. at the end of the first year of operating his new business, victor’s accountant reported an accounting profit of $150,000. what was victor’s economic profit?

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500