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Wayne, a Small Business Owner, Had Production Expenses Last Year

Question 26

Multiple Choice

Wayne, a small business owner, had production expenses last year of $40,000. Revenues were $100,000. Wayne gave up a job that paid $60,000 to open his business. Wayne earned:


A) an accounting profit of $100,000.
B) an economic profit of $100,000.
C) a negative rate of return.
D) a normal rate of return.

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