Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000 . The annual explicit costs of the materials used to make the cookie jars are $54,000 . Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. Christine could earn $6,000 per year as a tax preparer
What is the annual accounting profit of her cookie jar business?
a. $36,000
b. $35,950
c. $30,000
d. $29,950
a
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If the production possibilities frontier is ________, then opportunity costs are constant as more of one good is produced
A) bowed out B) linear C) bowed in D) non-linear
According to the New Classical theory, why may output differ from its full-employment level in the short run?
What will be an ideal response?
The tradeoffs faced by a society can be illustrated in a graph known as the:
a. production operations curve. b. production cost curve. c. production cost model. d. production cost forecast curve. e. production possibilities curve.
In long run equilibrium, a perfectly competitive firm: a. can earn positive economic profits. b. earns zero economic profits
c. can earn negative economic profits. d. can do any of the above.