Suppose That a Firm Earned $500,000 in Total Revenue

question 165

Multiple Choice

Suppose that a firm earned $500,000 in total revenue.At the same time,it incurred labor costs of $200,000; economic depreciation of $50,000; normal profit of $75,000; interest paid to the bank of $25,000; and used other factors of production that cost $100,000.The economic profit earned by the firm equals

• A) $275,000.
• B) $175,000.
• C) $50,000.
• D) $200,000.
• E) $500,000.

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Definitions:

Vestibular Nucleus

A cluster of neurons in the brainstem that plays a crucial role in processing information related to balance and spatial orientation from the inner ear.

Extrinsic Eye Muscles

The six muscles located outside the eye that control its movement and positioning.

Cerebellum

A part of the brain located at the back of the skull, responsible for coordinating voluntary movements and maintaining balance and posture.

Olfactory Cortex

A brain region involved in the processing and perception of odors, part of the olfactory system.