Wayne, a Small Business Owner, Had Production Expenses Last Year

Multiple Choice

Wayne, a small business owner, had production expenses last year of $40,000. Revenues were $100,000. Wayne gave up a job that paid $60,000 to open his business. Wayne earned an:

A) accounting profit of $100,000.
B) economic profit of $100,000.
C) accounting profit of zero.
D) economic profit of zero.