Fred is considering opening a ski shop in Colorado.Assume Fred will incur the following costs: building rent = $100,000/year,inventory = $250,000/year,energy = $50,000/year,and labor (one clerk)= $10,000/year.In addition,Fred's current income as a computer programmer is $40,000 per year.Assuming Fred would earn $460,000 in revenues,he could expect to earn:
A)an accounting profit of $10,000 per year.
B)an accounting profit of $60,000 per year.
C)an economic profit of $10,000 per year.
D)an economic profit of $50,000 per year.

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The Answer of Fred is considering opening a ski shop in Colorado.Assume Fred will incur the following costs: building rent = $100,000/year,inventory = $250,000/year,energy = $50,000/year,and labor (one clerk)= $10,000/year.In addition,Fred's current income as a computer programmer is $40,000 per year.Assuming Fred would earn $460,000 in revenues,he could expect to earn:
A)an accounting profit of $10,000 per year.
B)an accounting profit of $60,000 per year.
C)an economic profit of $10,000 per year.
D)an economic profit of $50,000 per year.

Fred Is Considering Opening a Ski Shop in Colorado