Jim's Nursery produces and sells $1,100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim's profit
Is
A)$400.
B)$100.
C)$1,000.
D)$200.
E)$800.

Question

Quizplus · Accepted Answer

Jim's profit is calculated by subtracting all his expenses (wages, taxes, and interest on a loan) from his total revenue. So, $1,100 (revenue) - $700 (wages) - $100 (taxes) - $200 (interest) = $100.

Jim's Nursery Produces and Sells $1,100 Worth of Flowers