Bessie Wants to Calculate the Accounting and Economic Profits of Her

question 168

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

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Definitions:

Percents

A mathematical expression, indicating a part of a whole as so many hundredths.

Decimals

Numerical digits that represent fractions of ten, used to express numbers less than one or to provide precision in numerical representations.

Mixed/Whole Numbers

Numbers consisting of an integer and a fractional part, typically represented as a whole number and a proper fraction.

Percents

A mathematical representation of a fraction of 100, used to describe proportions or rates.