BooksCom Is Earning a Total Revenue of $200,000 Per Year

question 84

Essay

Books.com is earning a total revenue of $200,000 per year. Its annual total fixed costs are $50,000 and its annual total variable costs are $75,000. What is the operating profit for Books.com? What is economic profit?

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Definitions:

Lateralization Effects

The differing functions or activities of the right and left hemispheres of the brain.

Primary Neurotransmitter

A principal chemical substance released by neurons to transmit signals across synapses to other neurons or muscles.

Limbic System

A group of brain structures, including the amygdala, hippocampus, basal ganglia, and hypothalamus. Because these brain structures are associated more with emotion than with reasoning, the limbic system is often described as the “emotion brain” (in contrast to the cerebral cortex, which some have dubbed the “reasoning brain”).

Gray Matter

A major component of the central nervous system, consisting of neuronal cell bodies, dendrites, and unmyelinated axons, associated with processing and cognition.