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Suppose Wilma's annual salary as an accountant is $60,000 and her financial assets generate $4,000 per year in interest. One day, after deciding to be
Suppose Wilma's annual salary as an accountant is $60,000 and her financial assets generate $4,000 per year in interest. One day, after deciding to be her own boss, she quits her job and uses her financial assets to establish a consulting business, which she runs out of her home. To run the business, she outlays $8,000 in cash each year to cover all the costs involved with running the business, and earns revenues of $150,000. What are Wilma's annual economic profits?
A) $78,000
B) $142,000
C) $138,000
D) $150,000
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