A small business owner earns $50,000 in revenue annually. The explicit annual costs equal $30,000. The owner could work for someone else and earn $25,000 annually. The owner's and the economic profit is business/accounting profit is O $20,000, $20,000

A small business owner earns $50,000 in revenue annually. The explicit annual costs equal $30,000. The owner could work for someone else and earn $25,000 annually. The owner's and the economic profit is business/accounting profit is O $20,000, $20,000

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 1MC

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Question

A small business owner earns $50,000 in revenue annually. The explicit annual costs equal
$30,000. The owner could work for someone else and earn $25,000 annually. The owner's
and the economic profit is
business/accounting
profit is
$20,000, $20,000
$25,000,-$5,000
$25,000, $20,000
$20,000,-$5,000

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