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After working for 25 years as personal fitness trainers while raising their kids, three sisters cashed in a total of $100,000 in bonds and decided
After working for 25 years as personal fitness trainers while raising their kids, three sisters cashed in a total of $100,000 in bonds and decided to open a small, neighborhood fitness center. They spent the $100,000 on exercise equipment, advertising, computer equipment, and other fumishings for the business. For the next 3 years, they took in $155,000 in revenue each year, paid themselves $35,000 annually each, and rented a space in a strip mall for $36,000 per year. Before the investment, their $100,000 in bonds were earning interest at a rate of 11 percent Are they now earning economic profits? Explain your answer. O A. They are earning profits of $108,000, which takes into account the $11,000 opportunity cost of their capital O B. They are earning profits of $19,000, which takes into account the $100,000 opportunity cost of their capital. O C. They are earning profits of $119,000, which takes into account the opportunity cost of their capital. O D. They are earning profits of $3,000, which takes into account the $11,000 opportunity cost of their capital and the $105,000 combined opportunity cost of their own labor slor Wi
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