Corinne Is Offered a Job with a Salary of $70,000

Multiple Choice

Corinne is offered a job with a salary of $70,000, which she turns down to start her own business. She uses $20,000 of her own savings to help start the business, savings that had been providing her a return of $1,000 per year. Over her first year in business, Corinne collects total revenue of $180,000 and must cover explicit costs of $105,000. During her first year in business, Corinne's accounting profit is _____, and her economic profit is _____.

A) $110,000; $4,000
B) $75,000; $4,000
C) $75,000; -$16,000
D) $110,000; -$16,000