Alex is considering leaving his job, where he earns $60,000 a year, to start a new business. He estimates that the business will generate $100,000 in revenue and incur costs of $70,000 in its first year. What is the economic profit of Alex's business venture, taking into account the opportunity cost of his salary?

To find the economic profit of Alex's new business, we first need to consider both the revenue and the costs. The business is expected to earn $100,000 in revenue, but it will also have costs of $70,000, which means the accounting profit is $30,000 ($100,000 - $70,000). However, we must also consider the opportunity cost of Alex's current salary, which is $60,000. This means that the true economic profit is calculated by subtracting both the costs and the opportunity cost from the revenue, leading to an economic profit of $30,000 - $60,000, which equals -$30,000. Therefore, if Alex leaves his job for the business, he would actually be at a loss of $30,000 in economic terms.