Solved

Suppose Ernie Gives Up His Job as Financial Advisor for P.E.T.S

Question 88

Multiple Choice

Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned $30, 000 per year, to open up a store selling spot remover to Dalmatians.He invested $10, 000 in the store, which had been in savings earning 5 percent interest.This year's revenues in the new business were $50, 000, and explicit costs were $10, 000.Calculate Ernie's economic profit.


A) $10, 000
B) $50, 000
C) $20, 000
D) $40, 000
E) $9, 500

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions