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During Its Only Year of Operation,a Firm Collected $175,000 in Revenue

Question 181

Multiple Choice

During its only year of operation,a firm collected $175,000 in revenue and spent $50,000 on raw materials,labor,and utilities.The owners of the firm spent $100,000 of their own money to build the firm's factory (instead of buying bonds and earning a 10% annual rate of return) ,which they sold at the end of the year for $100,000.The firm's economic profit is:


A) $35,000.
B) $125,000.
C) $115,000.
D) $25,000.

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