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An entrepreneur invests $500,000 of their own savings to start a new coffee shop. After the first year, the shop's total revenue is $300,000 and its explicit costs (rent, wages, supplies) are $250,000, resulting in an accounting profit of $50,000. The entrepreneur could have earned a 15% annual return by investing the $500,000 in a stock market index fund with similar risk. From an economic standpoint, what is the most accurate assessment of the coffee shop's first-year performance?
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