The Sole Proprietor of the Milwaukee Machine Company Receives All

Multiple Choice

The sole proprietor of the Milwaukee Machine Company receives all accounting profits earned by her firm. She has a standing salary offer of $32,000 a year to work for a large corporation. If she had invested her capital outside her own company, she estimates that would have returned $15,000 this year. If accounting profits for the year were $55,000, then her economic profits were (based solely on the given figures)

A) $102,000.
B) $8,000.
C) $47,000.
D) $-23,000.