The following is cost information for the Creamy Crisp Donut Company.Entrepreneur's potential earnings as a salaried worker = $50,000Annual lease on building = $22,000Annual revenue from operations = $380,000Payments to workers = $120,000Utilities (electricity, water, disposal) costs = $8,000Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000Entrepreneur's forgone interest on personal funds used to finance the business = $6,000Creamy Crisp Donut Company
A) has lower explicit costs, than implicit costs.
B) is earning a normal profit but not an economic profit.
C) is earning an economic profit.
D) is suffering an economic loss, when implicit costs are considered.
Correct Answer:
Verified
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