Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. Which of the following statements is true?
A. Tom has an opportunity cost of $41,000.
B. Tom earns an accounting profit of $35,000.
C. Tom experiences an economic loss of $6000.
D. All of these are true.
D. All of these are true.
Economics
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The federal government and some state governments levy taxes on specific goods such as gasoline, cigarettes, and beer. These are known as
A) sin taxes. B) sales taxes. C) specific taxes. D) excise taxes.
Economics
Louise is unemployed due to a decrease in the demand for workers with a knowledge of a certain word processing language. This is an example of:
a. cyclical unemployment. b. frictional unemployment. c. involuntary unemployment. d. structural unemployment.
Economics