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Ms. Walters runs a small business. The total value of the firm's capital stock is $500,000. Revenue this year is expected to be $400,000 and
Ms. Walters runs a small business. The total value of the firm's capital stock is $500,000. Revenue this year is expected to be $400,000 and the cost of operating is $170,000. Government bond are currently paying a rate of return of 25% per annum. Calculate her economic profit.
Select one:
a. $230,000
b. $470,000
c. $400,000
d. $170,000
e. $270,000
f. $500,000
g. $570,000
h. $105,000
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