Libby Has a Business Using No Owned Capital and Makes

question 33

Multiple Choice

Libby has a business using no owned capital and makes an accounting profit of $52,000 a year. Libby could have worked for Verizon Wireless with a pay of $35,000 a year, but she would not have had time to run her business. The economic profit from Libby's business per year is

• A) $87,000.
• B) $35,000.
• C) $17,000.
• D) − $17,000.

---

Definitions:

Private Organizations

Entities that operate independently of government control, often driven by private ownership or non-profit motives.

Medicare Coverage

A federal health insurance program in the United States for people aged 65 and older, as well as for some younger individuals with disabilities.

Federal Government

The national government of a federated state, which shares sovereignty with the individual sub-units (such as states or provinces) and which possesses the highest authority in the land under the constitution.

End-Stage Renal Disease

A chronic condition where the kidneys lose their ability to filter waste, electrolytes, and fluids effectively, often requiring dialysis or transplantation.