A Firm Has $200 Million in Total Revenue and Explicit

question 88

Multiple Choice

A firm has $200 million in total revenue and explicit costs of $190 million. Suppose its owners have invested $100 million in the company at an opportunity cost of 10 percent interest rate per year. The firm's economic profit is:

• A) $400 million.
• B) $100 million.
• C) $80 million.
• D) zero.