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Given the Following Information That Includes All Costs of the Firm

Question 17

Multiple Choice

Given the following information that includes all costs of the firm, we know that:  Value of final sales $1,000 Rent $200 Compensation to employees $500 Interest $500\begin{array} {| l | r| } \hline \text { Value of final sales } & \$ 1,000 \\\hline \text { Rent } & \$ 200 \\\hline \text { Compensation to employees } & \$ 500 \\\hline \text { Interest } & \$ 500 \\\hline\end{array}


A) profit is -$200.
B) profit is $200.
C) there is a loss that must be subtracted from final sales so that income equals output.
D) income does not equal the value of final output.

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