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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.
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
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