Adam Weed Is the Owner/operator of a Flower Shop

question 51

Multiple Choice

Adam Weed is the owner/operator of a flower shop.Last year he earned $250,000 in total revenue.His explicit costs were $175,000 paid to his employees and suppliers (assume that this amount represents the total opportunity cost of these resources) .During the year he received three offers to work for other flower shops with the highest offer being $75,000 per year.Which of the following is true about Adam's accounting and economic profit?

• A)Accounting profit = $75,000;economic profit = $0.
• B)Accounting profit = $175,000;economic profit = $75,000.
• C)Accounting profit = $75,000;economic profit = negative $100,000.

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Definitions:

Slavery Extension

The political and social debate over the expansion of slavery into new territories or states in a country.

Protective Tariff

A tariff imposed on imports to protect domestic industries from foreign competition by increasing the cost of imported goods, thereby making local goods more competitively priced.

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Refers to the thirteen British colonies in North America that declared independence in 1776, leading to the American Revolutionary War and the formation of the United States.

Spain

A country located on the Iberian Peninsula in Europe, known for its rich history, cultural diversity, and significant contributions to art, literature, and global exploration.