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Suppose That a Firm Earned $500,000 in Total Revenue

Question 165

Multiple Choice

Suppose that a firm earned $500,000 in total revenue.At the same time,it incurred labor costs of $200,000; economic depreciation of $50,000; normal profit of $75,000; interest paid to the bank of $25,000; and used other factors of production that cost $100,000.The economic profit earned by the firm equals


A) $275,000.
B) $175,000.
C) $50,000.
D) $200,000.
E) $500,000.

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