Homework.aspx?homeworkld=627164580&questionid=1&flushed=false&cld=6988207¢erwin=yes Minghan Li 08/09/22 8:20 PM Question 1, Instructor-created question HW Score: 0%, 0 of 30 points O Points: 0 of 3 Save [Q: 9-2850252] A young entrepreneur has invested $400,000 into a business that she has started. The business expects to earn $250,000 in total revenue, per year, with total variable costs of $212,500, per year. She is the only employee and is currently paying herself a salary of $40,000 from this business (this is included in the total variable costs). Assume that fixed costs are negligible. Based on the values given above, what are the annual accounting profits of this business? [Hint: since fixed costs are negligible, accounting profits = TR - TVC] 5. (Enter your answer as a whole number, including a negative sign if appropriate). What does the shut-down rufe tell us about this business? A. Since accounting profits are negative, this business should exit the market in the long-run. O B. Since accounting profits are negative, this business should shut down in the short-run. O C. Since accounting profits are not negative, this business should continue operating in the long-run. O D. Since accounting profits are not negative, this business should continue operating in the short-run. The entrepreneur could use her resources in a different manner if she chose to. She could withdraw the money she has invested into the business and instead invest the money into a money-market account with an expected return of 5%. Instead of spending her time working for the business, she could instead enter the labor market where she expects that she could earn $52,000 per year. What is the annual opportunity cost of the money she has invested in the business? $ (Enter your answer rounded to the nearest whole number). What is the annual opportunity cost of the time she has invested in the business? $. (Enter your answer rounded to the nearest whole number). Based on the values you've calculated, what are the annual economic profits of this business? - (Enter your answer rounded to the nearest whole number, including a negative sign if appropriate). What does the exit rule tell us about this business? O A. Since economic profits are negative, this business should exit the market in the long - run O B. Since economic profits are negative, this business should shut down in the short-run O C. Since economic profits are not negative. this business should continue operating in the long - run. O D. Since economic profits are not negative, this business should continue operating in the short-run. tructor Clear all Check anawer