During Its Only Year of Operation,a Firm Collected $175,000 in Revenue

question 181

Multiple Choice

During its only year of operation,a firm collected $175,000 in revenue and spent $50,000 on raw materials,labor,and utilities.The owners of the firm spent $100,000 of their own money to build the firm's factory (instead of buying bonds and earning a 10% annual rate of return) ,which they sold at the end of the year for $100,000.The firm's economic profit is:

• A)$35,000.
• B)$125,000.
• C)$115,000.
• D)$25,000.

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Definitions:

High Collectivism

A cultural orientation where individuals prioritize the goals and well-being of the group over personal interests.

Individualistic Value Orientation

A cultural perspective in which the importance of the individual and individual rights are emphasized over group or collective considerations.

High Collectivism

A cultural orientation emphasizing strong loyalty to one's group and prioritizing group goals over individual interests.

Long-Term Orientation

A cultural or organizational perspective that emphasizes planning and investing in the future, valuing perseverance, and viewing change as evolutionary.