Scenario 13-19

Doreen's Dairy produces and sells Swiss cheese. Last year, it produced 7,000 pounds and sold each pound for $6. In producing the 7,000 pounds, the dairy incurred variable costs of $28,000 and a total cost of $40,000.

Refer to Scenario 13-19. Suppose the owner of the business had an offer to work for another firm for $25,000. The firm's economic profit for the year was

a.-$26,000.b.-$23,000.c.$2,000.d.$14,000.