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
Refer to the data.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
Q31: Answer the question on the basis
Q34: Marginal product is:
A) the increase in total
Q37: The following is cost information for the
Q40: The following is cost information for the
Q102: The long run is characterized by
A)the relevance
Q106: The amount of calendar time associated with
Q115: To economists, the main difference between the
Q119: The short run is characterized by
A)plenty of
Q129: Which of the following statements concerning the
Q160: Marginal product
A)diminishes at all levels of production.
B)may
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