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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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