A person starts her own business, quitting a job in which she was making $125 000 a year. Expenses include $150 000 for wages to employees, $20 000 for utilities, $110 000 for materials. She also uses a building she owned that had produced $35 000 a year in rent. If a normal rate of return is $25,000 and total revenue for the year is $475,000, economic profit is Select one: а. $O a year or breakeven. b. $10 000 a year. с. $35 000 a year.

A person starts her own business, quitting a job in which she was making $125 000 a year. Expenses include $150 000 for wages to employees, $20 000 for utilities, $110 000 for materials. She also uses a building she owned that had produced $35 000 a year in rent. If a normal rate of return is $25,000 and total revenue for the year is $475,000, economic profit is Select one: а. $O a year or breakeven. b. $10 000 a year. с. $35 000 a year.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 39P: A firm is considering an investment that will earn a 6 rate of return. If it were to borrow the...

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