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:

Zuckerman

Marvin Zuckerman is a psychologist best known for his theory on the sensation seeking trait, a personality trait defined by the search for experiences and feelings that are varied, novel, complex, and intense.

Sensation Seeking Scale

A psychological assessment tool used to measure an individual's propensity for seeking novel, intense, and complex sensations and experiences.

Zuckerman

A reference to Marvin Zuckerman, a psychologist known for his research on sensation seeking, a personality trait characterized by the search for varied, novel, complex, and intense sensations and experiences.

Group Analysis

A form of psychotherapy that examines the dynamics within a group to understand and improve individual and collective psychological health.