Veruca sells therapeutic bath salts on the Internet. Her annual revenue is $52,000 per year, the explicit costs of her business are $14,000, and the opportunity costs of her business are $17,000 per year. What is her economic profit?
A) $14,000 B) $21,000 C) $31,000 D) $38,000
B
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Public versus private initiatives to expand canals and railroads in the United States:
a. featured a large percentage of government investment. b. featured a small percentage of government investment. c. were dominated by private investment. d. were exclusively private due to "strict constructionism."
Markets can exist:
A. only if there are property rights. B. only if there is perfect information. C. with or without property rights. D. only if all goods are private.
Suppose there is a decrease in the price at which a bondholder sells her bond. In this case, the holding period return will:
A. decrease, since this lowers the capital gain. B. be negative. C. equal the coupon rate. D. increase, since yields and prices are inversely related.
The MR = MC rule:
A. applies only to pure competition. B. applies only to pure monopoly. C. does not apply to pure monopoly because price exceeds marginal revenue. D. applies both to pure monopoly and pure competition.