Libby Has a Business Using No Owned Capital and Makes

Multiple Choice

Libby has a business using no owned capital and makes an accounting profit of $52,000 a year. Libby could have worked for Verizon Wireless with a pay of $35,000 a year, but she would not have had time to run her business. The economic profit from Libby's business per year is

A) $87,000.
B) $35,000.
C) $17,000.
D) − $17,000.