A Local Business Earned Total Revenue of $100,000 Against Economic

question 27

Multiple Choice

A local business earned total revenue of $100,000 against economic costs of $85,000, with the difference going to investors. If investors put in $200,000 and expect a 5% return on their investment, this business is earning a _____ economic profit.

• A) positive
• B) normal
• C) negative
• D) positive accounting profit but negative

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Definitions:

Standard Deviations

A statistic that measures the dispersion or spread of a set of data points relative to their mean.

Mean

The average of a set of numerical values, calculated by summing them up and dividing by the number of values.

Deviation

In statistics, it refers to the difference between the observed value and the mean of a dataset, indicating how much the data points diverge from the average.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable.