Mr Sweet Opened a Candy Store

question 292

Multiple Choice

Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000. Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year. What is Sweet's economic profit?

• A) $20,000
• B) -$20,000
• C) zero
• D) $35,000

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Definitions:

Employers

Individuals or organizations that hire others to perform services or work in exchange for compensation.

Employees

Individuals who are hired by a business or organization to carry out tasks and duties in return for compensation.

Age Discrimination

Unfair treatment of individuals based on their age, especially in employment settings.

Employment Act

Legislation designed to regulate employment conditions, rights, and duties of employers and employees.