Suppose Frank Quits His $25,000 a Year Job and Starts

Multiple Choice

Suppose Frank quits his $25,000 a year job and starts his own hauling company. He takes $10,000 out of his savings account at the bank, where he was earning 5 percent interest, to buy a truck. His other expenses, including the truck, are $20,000. Frank's revenues are$48,000. Frank ends up with

A) $3,000 in wage-related rent
B) $2,500 in entrepreneurial profit
C) a $7,000 loss
D) $48,000 in entrepreneurial profit
E) $3,000 in entrepreneurial profit