Suppose Ernie Gives Up His Job as a Financial Advisor

Multiple Choice

Suppose Ernie gives up his job as a financial advisor to P.E.T.S.,where he earned $30,000 per year,to open up a store selling pet-care products.He invested $10,000 in the store,which was originally savings that earned 5 percent interest.This year,the revenue from the new business was $50,000 and the explicit costs were $10,000.The economic profit earned by Ernie was _____

A) $10,000.
B) $50,000.
C) $20,000.
D) $40,000.
E) $9,500.