Corrina was working as a waitress in an Italian restaurant making an annual income of $25,000 per year when she decided to start up her own catering business
Corrina used $10,000 of her savings that was earning 5 percent annual interest to establish her business. After the first year she made an accounting profit of $20,000. Her economic profit was A) $5,550.
B) -$5,000.
C) $20,000.
D) $25,000.
A
You might also like to view...
Which of the following is true? a. The private market provides too much of goods that generate external benefits
b. In the case of external benefits, if we could add the benefits that are derived by non-paying consumers, the supply curve would shift to the right, increasing output. c. In the case of external benefits, a tax equal to external benefits would result in an efficient level of output. d. In the case of public goods, when people act as free-riders, some goods having benefits greater than costs will not be produced.
If excess reserves are too large, a bank is likely to
A. Borrow in the federal funds market. B. Borrow reserves from the discount window. C. Buy government securities. D. All of the choices are correct.