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 Alberta.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