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
If, other things equal, Creamy Crisp's revenue fell to $286,000,
A) its implicit costs, including a normal profit, would exceed its explicit costs.
B) it would earn a normal profit but not an economic profit.
C) it would suffer an economic loss.
D) its accounting profit would fall to $0.
Correct Answer:
Verified
Q30: Answer the question on the basis
Q32: Answer the question on the basis
Q33: Answer the question on the basis
Q38: The following is cost information for the
Q105: Which of the following represents a long-run
Q106: The amount of calendar time associated with
Q114: The basic difference between the short run
Q124: Marginal product is
A)the change in total output
Q129: Which of the following statements concerning the
Q131: The law of diminishing returns indicates that
A)as
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