Suppose that a small business takes in monthly revenue of $100,000 . Labor, rental, energy, and other purchased input costs are $70,000 . The owner/entrepreneur could earn $5,000 per month in another job, and the owner/entrepreneur could get a return of $5,000 each month if she sold her business and invested the net proceeds in a financial asset, such as a treasury bond. Which of the following

Economic globalization has seen ________

A) business cycles in the rest of the world synchronize with those of the U.S. B) financial markets become more integrated over time C) financial disruptions spread more easily among countries D) all of the above E) none of the above

A firm has $200 million in total revenue and explicit costs of $190 million. Suppose its owners have invested $100 million in the company at an opportunity cost of 10 percent interest rate per year. The firm's economic profit is:

a. $100 million. b. $400 million. c. $80 million. d. zero.