Donnie's Donuts incurs $450,000 per year in explicit costs and $200,000 in implicit costs. The bakery earns $800,000 in revenues and has $2 million in net worth. Based on this information, what is the economic profit for Donnie's Donuts?
A) $150,000
B) $350,000
C) $600,000
D) $1.2 million
Answer: A
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The federal funds rate is a better target for the Fed when
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A. economic surplus. B. the loss incurred by the monopolist. C. the profit earned by the monopolist. D. deadweight loss.