1. Suppose you turn down a job with a brokerage firm at $80,000 per year to start your own business. At the end of the first year, after paying all your expenses, your personal income comes to $100,000. For the first year, you:

1. earned economic profits of $20,000.
2. earned economic profits of $40,000.
3. earned economic profits of $60,000.
4. incurred economic losses of $20,000.
5. there is not enough information to determine economic profit or loss.

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