Use the Following to Answer Questions

question 31

Multiple Choice

Use the following to answer questions:
Scenario: Accounting and Economic Profit
Rather than put the $100,000 that his grandmother left him in a mutual fund that earns 5% each year, Tommy Wang quit his job, which paid $60,000 per year, and started Wang's Wicker Furniture Store. He rented a showroom for $20,000 for the year, purchased $60,000 in wicker furniture, and incurred costs of $40,000 for sales help and advertising. Instead of using the capital for his own business, he could rent it to a rival firm and earn $5,000 a year. In his first year, his revenue was $150,000.
-(Scenario: Accounting and Economic Profit) Look at the scenario Accounting and Economic Profit. The implicit cost of capital for Wang's Wicker Furniture Store is:

• A) $0.
• B) $2,000.
• C) $5,000.
• D) $50,000.

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Definitions:

Passive Smoking

The exposure of nonsmokers to the smoke of spouses, parents, or coworkers; environmental tobacco smoke.

Lung Cancer

A type of cancer that begins in the lungs and is often associated with smoking, characterized by uncontrolled cell growth in lung tissue.

Smoking Rates

The prevalence or incidence of tobacco smoking in a population, often measured as the percentage of individuals who smoke.

Lung Cancer Deaths

Fatal outcomes resulting from lung cancer, a type of cancer that begins in the lungs and is often associated with smoking.