Suppose That for Last Year, Sarah's Small Business Earned an Accounting

question 6

Multiple Choice

Suppose that for last year, Sarah's small business earned an accounting profit of $70,000 and an economic profit of $20,000. What can we correctly infer about Sarah's business?

• A)The difference between Sarah's total opportunity costs and her accounting costs is $50,000.
• B)Sarah's explicit costs were $50,000
• C)Sarah's total opportunity cost of her resources was $50,000.
• D)Sarah's firm cannot be maximizing profit.

---

Definitions:

FMLA leave

Refers to the Family and Medical Leave Act in the United States, allowing eligible employees to take unpaid, job-protected leave for specific family and medical reasons with continuation of group health insurance coverage.

Unpaid leave

Time off from work that an employee is allowed to take without pay, which can be for various reasons including medical leave, family emergencies, or personal time.

Religious discrimination

Unfair or unequal treatment of individuals or groups based on their religious beliefs or practices.

Prima facie case

Evidentiary standard that requires sufficient evidence to prove the case in the absence of any contradictory evidence.