Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Sweet opened a candy store. He rented a building for $30,000 a year. QUESTION 1 Mr. Sweet opened a candy store. He rented a

Mr. Sweet opened a candy store. He rented a building for $30,000 a year.

image text in transcribed
QUESTION 1 Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000. Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year. What is Sweet's economic profit? O $35,000 O -$20,000 O $20,000 O zero

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essays In Our Changing Order

Authors: Thorstein Veblen

1st Edition

1351311425, 9781351311427

More Books

Students also viewed these Economics questions