Corrina was working as a waitress in an Italian restaurant making an annual income of $25,000 per year when she decided to start up her own catering business
Corrina used $10,000 of her savings that was earning 5 percent annual interest to establish her business. After the first year she made an accounting profit of $20,000. Her economic profit was A) $5,550.
B) -$5,000.
C) $20,000.
D) $25,000.
A
You might also like to view...
When a firm or economy is operating efficiently, it is operating
A. outside its production possibilities frontier. B. inside its production possibilities frontier. C. on its production possibilities frontier. D. at the intersection of the production possibilities frontier and the vertical axis. E. at the intersection of the production possibilities frontier and the horizontal axis.
What is the timeline for the U.S. federal budget each year? When does a fiscal year begin and end?
What will be an ideal response?
Using the concentration ratio to measure the degree of competition
A) may understate the degree of competition because it ignores imported goods. B) may overstate the degree of competition because it ignores imported goods. C) may overstate the degree of competition because inter-industry competition is ignored. D) may understate the degree of competition because market share changes annually.
Which of the following conditions during 2008-2009 most closely paralleled the economic conditions of the Great Depression?
a. record-high unemployment rates for a period of many years b. a sharp and prolonged contraction in the money supply c. significant increases in taxes and trade restrictions in order to counter budget deficits d. frequent policy changes that generated an unstable and unpredictable economic climate