A person starts her own business, quitting a job in which she was making $125 000 a year. Expenses include $150 000 for wages to employees, $20 000 for utilities, $110 000 for materials. She also uses a building she owned that had produced $35 000 a year in rent. If a normal rate of return is $25,000 and total revenue for the year is $475,000, economic profit is Select one: а. $O a year or breakeven. b. $10 000 a year. с. $35 000 a year.
A person starts her own business, quitting a job in which she was making $125 000 a year. Expenses include $150 000 for wages to employees, $20 000 for utilities, $110 000 for materials. She also uses a building she owned that had produced $35 000 a year in rent. If a normal rate of return is $25,000 and total revenue for the year is $475,000, economic profit is Select one: а. $O a year or breakeven. b. $10 000 a year. с. $35 000 a year.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 39P: A firm is considering an investment that will earn a 6 rate of return. If it were to borrow the...
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![A person starts her own business, quitting a job in which she was making $125 000 a year. Expenses include $150 000 for
wages to employees, $20 000 for utilities, $11O 000 for materials. She also uses a building she owned that had produced $35
000 a year in rent. If a normal rate of return is $25,000 and total revenue for the year is $475,000, economic profit is
Select one:
а.
$O a year or breakeven.
b.
$10 000 a year.
С.
$35 000 a year.
d.
$195 000 a year.
TRIED ANSWER C. AND SAYS INCORRECT](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97384750-8f8e-4d7e-a0f8-16e99ac60f0f%2F960379b9-e180-492a-8efb-3271a48ea52f%2Fp28ekm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A person starts her own business, quitting a job in which she was making $125 000 a year. Expenses include $150 000 for
wages to employees, $20 000 for utilities, $11O 000 for materials. She also uses a building she owned that had produced $35
000 a year in rent. If a normal rate of return is $25,000 and total revenue for the year is $475,000, economic profit is
Select one:
а.
$O a year or breakeven.
b.
$10 000 a year.
С.
$35 000 a year.
d.
$195 000 a year.
TRIED ANSWER C. AND SAYS INCORRECT
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