​Sebastian Decides to Open a Tree Farm

question 81

Multiple Choice

​Sebastian decides to open a tree farm. When deciding to open his own business, he turned down two separate job offers of $25,000 and $30,000 and withdrew $20,000 from his savings. Sebastian's savings account paid 3 percent interest. He also borrowed $20,000 from his brother, whom he pays 2 percent interest per year. He spent $15,000 to purchase supplies and earned $50,000 in revenue during his first year. Which of the following statements is correct?

• A)​Sebastian's economic profit is $4,000, and his accounting profit is $34,600.
• B)​Sebastian's economic profit is $4,600, and his accounting profit is $35,000.
• C)​Sebastian's economic profit is -$16,000, and his accounting profit is $34,600.
• D)​Sebastian's economic profit is -$16,000, and his accounting profit is $14,600.

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Definitions:

Oxygen

A chemical element with symbol O and atomic number 8, essential for respiration in living organisms and combustion processes.

D-Block Elements

Elements occupying the d-block of the periodic table, known for their transition metals characteristic, including iron, copper, and gold.

Carbon

A chemical element with symbol C and atomic number 6, essential to all known living systems and the basis for organic chemistry.

Glaciers Melt

The process by which glaciers lose their ice mass to the surrounding water and air, contributing to sea-level rise and changes in global water cycles.