Answer:
$0
Explanation:
While working at Joe's Car repair,
Total earnings:
= salary + interest
= $40,000 + $10,000
= $50,000
After starting his own business
Earnings:
= Revenue - explicit costs - Savings
= $200,000 - $150,000 - $100,000
= -$50,000
Economic profit (or loss):
= -$50,000 - $50,000
= $0
Therefore, there will be no economic profit or loss.