1.The following is cost information for the Creamy Crisp Donut Company.

Entrepreneur's potential earnings as a salaried worker = $55,000

Annual lease on building = $23,000

Annual revenue from operations = $320,000

Payments to workers = $130,000

Utilities (electricity, water, disposal) costs = $8,000

Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000

Entrepreneur's forgone interest on personal funds used to finance the business = $6,000

If, other things equal, Creamy Crisp's revenue fell to $302,000,

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Multiple Choice

• its implicit costs would exceed its economic costs.
• it would earn a normal profit but not an economic profit.
• it would suffer an economic loss.
• its accounting profit would fall to $0.