Refer to Scenario 7.1 below to answer the question(s) that follow. SCENARIO 7.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year. Refer to Scenario 7.1. Your economic profit last year was
A. -$40,000.
B. -$10,000.
C. $10,000.
D. $30,000.
Answer: B
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When the yuan per dollar real exchange rate depreciates:
A) the U.S. net exports to China increase while the Chinese net exports to U.S. decrease. B) both the U.S. net exports to China and the Chinese net exports to U.S. increase. C) both the U.S. net exports to China and the Chinese net exports to U.S. decrease. D) the U.S. net exports to China decrease while the Chinese net exports to U.S. increase.
Pollution and depletion both occur because of poorly defined property rights
Indicate whether the statement is true or false
The interest rate in the federal funds market:
a. is determined by the imposition of price controls imposed by the Fed. b. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves. c. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks. d. is an interest rate that is largely unaffected by the policies of the Fed.
A firm operating in a perfectly competitive market may earn positive, negative, or zero economic profit in the short run
a. True b. False Indicate whether the statement is true or false