Gerald Is a Freelance Writer Who Could Work for a Newspaper

Multiple Choice

Gerald is a freelance writer who could work for a newspaper at $25,000 a year but instead runs his own business making revenue of $40,000 a year.His only business expenses are $1,000 for writing materials and $12,000 for rent.What is Gerald's economic profit from working as a freelance writer?

A) $2,000
B) $28,000
C) $15,000
D) $25,000
E) $27,000