The sole proprietor of the Milwaukee Machine Company receives all accounting profits earned by her firm and a $28,000-a-year salary. She has a standing salary offer of $35,000 a year working for a large corporation. If she had invested her capital outside her own company, she estimates that would have returned $22,000 this year. If accounting profits for the year were $50,000, economic profits were:

A. $0
B. -$7,000
C. $21,000
D. $50,000


C. $21,000

Economics

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