According to the theory of the firm, the value of the firm is

a.

the present value of expected future profits.

b.

the social welfare created by the firm

c.

the consumer surplus

d.

the producer surplus

You give up a job earning $800/week to start a business of your own. Your weekly revenue from the business is $2000, and your total material cost is $1000. Your economic profit is:

a.

$200

b.

$800

c.

$1000

d.

$1200