Three econ students are considering opening a frozen yogurt shop during the summer. This is an alternative for their usual summer jobs that pay $6,000 each. They can lease a fully equipped facility for $8,000 for the summer. Their insurance will cost $1,000. Materials and supplies are $.40 per unit, and they can sell each unit for $1.00.

1. What is the accounting cost function for this business?
2. What is the economic cost function for this business?
3. What is the accounting break-even output?
4. What is the economic break-even output?