An web designer quits a project where she was paid $50,000 on completion of the project. She joins a new company with sales revenues of $550,000 last year, while spending $250,000 on compensation for employees (excluding the owner), $70,000 on capital, and $30,000 on materials. What was the firm’s economic profit? A) 25,000 B) 100,000 C) 150,000

An web designer quits a project where she was paid $50,000 on completion of the project. She joins a new company with sales revenues of $550,000 last year, while spending $250,000 on compensation for employees (excluding the owner), $70,000 on capital, and $30,000 on materials. What was the firm’s economic profit? A) 25,000 B) 100,000 C) 150,000

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 17E

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