Gerald Is a Freelance Writer Who Could Work for a Newspaper

question 138

Multiple Choice

Gerald is a freelance writer who could work for a newspaper at $25,000 a year but instead runs his own business making revenue of $40,000 a year.His only business expenses are $1,000 for writing materials and $12,000 for rent.What is Gerald's economic profit from working as a freelance writer?

• A)$2,000
• B)$28,000
• C)$15,000
• D)$25,000
• E)$27,000

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Definitions:

Utilization

The process of using resources or capabilities effectively and efficiently.

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A business approach where a company concentrates its resources on entering or expanding in a narrow market or industry segment.