Suppose that you open your own business and earn an accounting profit of $30,000 per year. When you started your business, you left a job that paid you a $25,000 salary annually
Also, suppose that you invested $70,000 of your own funds to start up your business. If the normal rate of return on capital is 5 percent, your economic profit is A) $5,000.
B) -$1,500.
C) $1,500.
D) -$5,000.
C
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A consumer's indifference curves can never cross
Indicate whether the statement is true or false
In a defined contribution pension plan,
A) pension income varies depending on how well the plan's investments have done. B) the employee is promised an assigned benefit based on earnings and years of service. C) if the funds in the pension plan exceed the amount promised, the excess accrues to the issuing firm or institution. D) all earnings are taxable as regular income.
Which of the following is NOT one of the basic questions that an economic system attempts to answer?
A. For whom will goods and services be produced? B. How to identify what people need? C. How will goods and services be produced? D. What to produce?
Refer to Scenario 3.3 below to answer the question(s) that follow.SCENARIO 3.3: -Mustard and mayonnaise are substitutes. -Mustard and relish are complements. -Mustard is a normal good. -During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.Refer to Scenario 3.3. If at the same time of the mustard recall, consumer income also decreased. Then, ceteris paribus, in the market for mustard this would have caused
A. the equilibrium price to increase and the equilibrium quantity to decrease. B. both the equilibrium price and quantity to decrease. C. the equilibrium quantity could have increased, decreased, or remained the same and the equilibrium price to decrease. D. the equilibrium price to either increase, decrease, or remain the same and the equilibrium quantity to decrease.