The Following Is Cost Information for the Creamy Crisp Donut

question 26

Multiple Choice

The following is cost information for the Creamy Crisp Donut Company.Entrepreneur's potential earnings as a salaried worker = $48,000Annual lease on building = $20,000Annual revenue from operations = $280,000Payments to workers = $118,000Utilities (electricity, water, disposal) costs = $8,000Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000Entrepreneur's forgone interest on personal funds used to finance the business = $6,000Creamy Crisp's economic profit is

• A)$280,000.
• B)$146,000.
• C)$134,000.
• D)$0.

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Definitions:

Other-race Effect

The tendency to more easily recognize faces of the race that one is most familiar with, which is thought to develop during infancy.

Availability Heuristic

A cognitive shortcut based on the first examples that pop up in one's thoughts when contemplating a particular subject, idea, strategy, or choice.

Explicit Bias

Refers to the attitudes and beliefs we have about a person or group on a conscious level.

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over those of other groups.