Bessie Wants to Calculate the Accounting and Economic Profits of Her

question 168

Multiple Choice

Bessie wants to calculate the accounting and economic profits of her cattle farm in Nebraska.She pays $30,000 per year in overhead,$80,000 in wages,and $20,000 in insurance.She forgoes $30,000 per year that she could make as a teacher.If her total revenue equals $140,000,that means her accounting profit is _____ and her economic profit is _____.

• A)$10,000;-$20,000
• B)$30,000;-$30,000
• C)-$10,000;-$10,000
• D)$60,000;$30,000