Bessie Wants to Calculate the Accounting and Economic Profits of Her

Multiple Choice

Bessie wants to calculate the accounting and economic profits of her cattle farm in Nebraska.She pays $30,000 per year in overhead,$80,000 in wages,and $20,000 in insurance.She forgoes $30,000 per year that she could make as a teacher.If her total revenue equals $140,000,that means her accounting profit is _____ and her economic profit is _____.

A) $10,000;-$20,000
B) $30,000;-$30,000
C) -$10,000;-$10,000
D) $60,000;$30,000