Manisha Could Work for Another Firm Making $10,000 Per Month

question 106

Multiple Choice

Manisha could work for another firm making $10,000 per month, but she decides to open her own gourmet cheese store and pay herself $2,000 per month. In her first month of operations, she spends $6,000 on cheese, $1,000 on other items, and $2,500 on rent. She had a great opening month and brought in revenues of $14,500. What are Manisha's economic profits?

• A)$3,000
• B)$4,000
• C)-$5,000
• D)-$6,000

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Definitions:

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