Happy Cows Is a Dairy Farm That Is Currently Earning

question 38

Multiple Choice

Happy Cows is a dairy farm that is currently earning $75,000 in economic profit. The managers of Happy Cows are considering adding a second dairy farm, which will generate an additional $30,000 in economic profit. It is economically sound for the managers of Happy Cows to add the second farm if, after accounting for the managerial diseconomies, the first farm's economic profits exceed ______.

• A)$35,000
• B)$30,000
• C)$25,000
• D)$45,000

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