
Scenario 14-2
As part of an estate settlement, Mary received $1 million.She decided to use the money to purchase a small business.If Mary had invested the $1 million in a risk-free bond fund she could have made $80,000 each year.She also quit her $75,000 per year job to devote all of her time to her new business.
-Refer to Scenario 14-2.At the end of the first year of operating her new business,Mary's accountant reported an accounting profit of $130,000.What was Mary's economic profit
A) $25,000 loss
B) $50,000 loss
C) $25,000 profit
D) $150,000 profit
Correct Answer:
Verified
Q118: Figure 14-5 Q119: Figure 14-6 Q120: A firm's marginal cost has a minimum Q121: Assume a firm is producing 500 units Q122: Which expression calculates the profit of a Q124: A profit-maximizing firm in a competitive market Q125: Are the decisions to shut down and Q126: Figure 14-7 Q127: Figure 14-7 Q128: Which expression is correct for a competitive
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In the figure, panel (a) depicts
In the figure, panel (a) depicts
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