Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000. What is her economic profit?
A) $17,000
B) $25,000
C) $42,000
D) $47,000
Answer: B
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Refer to the scenario above. Real GDP of the country has grown by ________
A) 0.2% B) 10% C) 5% D) 20%
If consumers believe the price of hybrid vehicles will decrease in the future, this will cause the demand for hybrid vehicles to decrease now
Indicate whether the statement is true or false
Monopolistically competitive firms have downward-sloping demand curves. In the long run, monopolistically competitive firms earn zero economic profits. These two characteristics imply that in the long run
A) monopolistically competitive markets achieve productive efficiency. B) monopolistically competitive firms have excess capacity. C) monopolistically competitive firms earn economic profits. D) monopolistically competitive markets achieve allocative efficiency.
Government-sponsored goods are those goods
A) that society views desirable through the political process. B) that companies give away as promotional prizes. C) that have lower than average negative externality. D) that only low-income individuals consume.