The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000
Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000
Creamy Crisp
A) has lower implicit costs, including a normal profit, than its explicit 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
Q28: The following is cost information for the
Q30: Answer the question on the basis
Q88: The following is cost information for the
Q101: The basic characteristic of the short run
Q102: The long run is characterized by
A)the relevance
Q105: Which of the following represents a long-run
Q109: Which of the following is a short-run
Q115: To economists, the main difference between the
Q119: The short run is characterized by
A)plenty of
Q139: Which of the following best expresses the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents