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A Firm Has $350 Million in Revenues and Explicit Costs

Question 52

Multiple Choice

A firm has $350 million in revenues and explicit costs of $150 million.If its owners have invested $150 million in the company at an opportunity cost of 10 percent a year, the firm's economic profit is:


A) $50 million.
B) $150 million.
C) $185 million.
D) $200 million.
E) $215 million.

Correct Answer:

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