Suppose a Firm Has an Annual Budget of $200,000 in Wages

question 74

Multiple Choice

Suppose a firm has an annual budget of $200,000 in wages and salaries,$75,000 in materials,$30,000 in new equipment,$20,000 in rented property,and $35,000 in interest costs on capital.The owner/manager does not choose to pay himself,but he could receive income of $90,000 by working elsewhere.The firm earns revenues of $360,000 per year.To receive a normal profit,the firm described above would have to

• A)Experience $10,000 less in cost.
• B)Earn $90,000 more in revenue.
• C)Earn $10,000 more in revenue.
• D)Do nothing since it already earns a normal profit.

---

Definitions:

Developmental Stage

A phase of growth and development that individuals typically pass through, marked by specific milestones.

Self-absorption

Excessive preoccupation with oneself and one's own needs, often at the expense of others.

Altered Self-concept

A change in the way one perceives one's identity, characteristics, and capabilities, often due to illness or major life events.

Risky Behaviour

Actions that expose individuals to harm or significant risk of negative outcomes.