Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that a small business takes in monthly revenue of $200,000. Labor, rental, energy, and other purchased input costs come to a total of $110,000.

image text in transcribed
Suppose that a small business takes in monthly revenue of $200,000. Labor, rental, energy, and other purchased input costs come to a total of $110,000. The ownerfentrepreneur's monthly opportunity cost of her time invested in the business is $5,000 l[this is what she could earn working elsewhere], and the ownerfentrepreneur could get a return of $5,000 each month it she sold her business and invested the net proceeds in a financial asset such as a treasury bond. Which of the following correctly describes her monthly economic profit? $20,0 0 0

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

The Levelling What's Next After Globalization

Authors: Michael O'Sullivan

1st Edition

1541724089, 9781541724082

More Books

Students also viewed these Economics questions

Question

Considering the discussion in Box

Answered: 1 week ago

Question

Did Elizabeth use visual aids effectively?

Answered: 1 week ago

Question

What is the mean world syndrome?

Answered: 1 week ago

Question

Is Elizabeths speech persuasive or informative or both?

Answered: 1 week ago