Multiple Choice
The economy's current rate of interest is 10 percent and a firm has $10,000 of owner-invested capital. Its total revenue is $5,000 and the firm's explicit costs are $3,000. From this we know that this firm's
A) accounting profit is $500.
B) economic profit is $2,000.
C) accounting profit is $12,000.
D) economic profit is $1,000.
Correct Answer:
Verified
Correct Answer:
Verified
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