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The following is cost information for the Creamy Crisp Donut Company. Annual lease on building = $25,000 Annual revenue from operations = $420,000 Payments to
The following is cost information for the Creamy Crisp Donut Company. Annual lease on building = $25,000 Annual revenue from operations = $420,000 Payments to workers = $150,000 Utilities (electricity, water, disposal) costs = $8,000 El Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to nance the business = $6,000 5 Entrepreneur's potential earnings as a salaried worker = $40,000 eBook If, other things equal, Creamy Crisp's revenue fell to $309,000, Multiple Choice O its implicit costs would exceed its economic costs. it would earn a normal prot but not an economic prot. its accounting profit would fall to $0 O it would suffer an economic loss
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