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During Its Only Year of Operation,a Firm Collected $175 000

Question 40

Multiple Choice

During its only year of operation,a firm collected $175 000 in revenue and spent $50 000 on raw materials,labour,and utilities.The owners of the firm spent $100 000 of their own money to build the firm's factory (instead of buying bonds and earning a 10% annual rate of return) ,which they sold at the end of the year for $100 000.The firm's economic profit is:


A) $35 000.
B) $125 000.
C) $115 000.
D) $25 000.

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