Fred is considering opening a ski shop in Colorado. Assume Fred will incur the following costs: building rent = $100,000/year, inventory = $250,000/year, energy = $50,000/year, and labor (one clerk) = $10,000/year
In addition, Fred's current income as a computer programmer is $40,000 per year. Assuming Fred would earn $460,000 in revenues, he could expect to earn: A) an accounting profit of $10,000 per year.
B) an accounting profit of $60,000 per year.
C) an economic profit of $10,000 per year.
D) an economic profit of $50,000 per year.
C
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At the efficient level of pollution, the:
a. total social costs and total social benefits of reduction are equal. b. marginal social costs and marginal social benefits are equal. c. marginal private costs and marginal private benefits are equal. d. total private costs and total private benefits are equal.
A decline in U.S. interest rates causes the U.S. dollar to depreciate, making U.S. exports more attractive and imports less attractive. As a result, exports increase, imports decrease, and net exports increase, resulting in an increase in aggregate quantity demanded. This is an example of the _____
a. interest rate effect b. exchange rate effect c. wealth effect d. accelerator effect
Compared to the 1910-1960 period, economic fluctuations during the past 50 years have been less severe. Most economists believe that this increased stability is primarily the result of
a. more stable monetary policy. b. the smaller budget deficits of recent decades. c. regulations that promoted more affordable housing. d. greater stability of stock prices as measured by the Dow Jones Industrial Average.
At what average annual rate has real GDP and real GDP per capita, respectively, grown from 1950 to 2012?
A. 7.5 percent and about 5 percent B. 3.1 percent and about 2 percent C. 5.1 percent and about 3 percent D. 1.1 percent and about 0.5 percent