Suppose Your Accountant Told You That the $50,000 You Made

Multiple Choice

Suppose your accountant told you that the $50,000 you made last year was your normal profit. When you asked him what your accounting profit was he replied that it was precisely the same as your normal profit. You wouldn't have to ask what your economic profit was because you know it must be

A) 0
B) $50,000
C) $100,000
D) $50,000 loss
E) $100,000 loss