Suppose a Firm's Total Revenue Is $1,000,000

Multiple Choice

Suppose a firm's total revenue is $1,000,000. The firm has incurred explicit costs of $750,000. There is also $50,000 of forgone wages by the owner, $10,000 of forgone interest by the owner, $3,000 worth of economic depreciation, and $20,000 worth of normal profit. What is the firm's economic profit?

A) $190,000
B) $180,000
C) $250,000
D) $200,000
E) $167,000