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

question 81

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. What is the economic profit for the firm described above?

• A)-$90,000.
• B)$0.
• C)$90,000.

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Definitions:

Eating Habits

The patterns of dietary consumption and food choices of an individual or a group.

Traditional Chinese Medicine

A holistic and ancient healing system from China utilizing methods like acupuncture, herbal medicine, and qigong to treat and prevent health conditions.

Managing Stress

Techniques and practices aimed at identifying sources of stress and developing strategies to minimize or cope with stress.

Acupuncture

A traditional Chinese medicine technique involving the insertion of needles into specific points on the body to relieve pain or treat various health conditions.