A small business owner earns $50,000 in revenue annually. The explicit annual costs equal $30,000. The owner could work for someone else and earn $25,000 annually. The owner's business profit is ________ and the economic profit is ________
A) $20,000; $5,000
B) $20,000; -$5,000
C) $25,000; -$5,000
D) $45,000; -$5,000
B
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In the above figure, if we start at AD1 and SRAS1, and the money supply increases unexpectedly, what would be the long-run equilibrium?
A) E3 B) E1 C) P1 D) E2
Which of the following will shift the demand for the euro to the right?
A) expectations among speculators that the price of the euro will rise in the future B) an increase in incomes in countries that buy goods from the European Union C) an increase in interest rates in the European Union D) All of the above will shift the demand for the euro to the right.
Which of these is the best measure of the average standard of living in an economy?
a. The unemployment rate b. Nominal income c. Real GDP d. National debt e. Real GDP per capita
Which of the following would be viewed as a common property problem?
A) Your property is burglarized. B) Vandals damage your property. C) People pick all of the flowers in a public park. D) To be safe you must lock your door at night.