A firm has $200 million in total revenue and explicit costs of $190 million. If its owners have invested $100 million in the company at an opportunity cost of 10 percent interest per year, the firm's accounting profit is: A $400 million. B $100 million. $80 million. (D) $10 million. E zero

A firm has $200 million in total revenue and explicit costs of $190 million. If its owners have invested $100 million in the company at an opportunity cost of 10 percent interest per year, the firm's accounting profit is: A $400 million. B $100 million. $80 million. (D) $10 million. E zero

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm has $200 million in total revenue and explicit costs of $190 million. If its owners have invested $100
million in the company at an opportunity cost of 10 percent interest per year, the firm's accounting profit is:
$400 million.
$100 million.
C$80 million.
E zero
$10 million.
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