Refer to Scenario 7.4 below to answer the question(s) that follow.SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters. Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000. To start this business you invested an amount of your own capital that could pay you a $50,000 a year return.Refer to Scenario 7.4. Your economic profit last year was

A. -$20,000.
B. $40,000.
C. $70,000.
D. $90,000.


Answer: B

Economics

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Which of the following suggests that private markets can be effective in dealing with externalities?

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