The Lynx Manufacturing Company Produces Components Used in Electronic Toys

question 92

Multiple Choice

The Lynx Manufacturing Company produces components used in electronic toys. In fiscal year 2017, Lynx earned an accounting profit of $3 million. However, Lynx's production facilities might have also been used to produce components for mobile phones, which would have generated $2 million in revenues and saved the company $500,000 in production costs. Which of the following statements is true?

• A) Lynx earned an economic profit of $5.5 million.
• B) Lynx earned an economic profit of $500,000.
• C) Lynx suffered an economic loss of $500,000.
• D) Lynx suffered an economic loss of $2.5 million.

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Definitions:

New Negro

describes a movement promoting African American cultural appreciation and racial equality during the Harlem Renaissance in the 1920s.

Established Stereotypes

Widely accepted but oversimplified and generalized beliefs about a particular group of people or type of individual, often leading to misconceptions and biases.

Farmers

Individuals engaged in agriculture, raising living organisms for food or raw materials, foundational to the agricultural sector.

Prosperity

A state of flourishing, wealth, or success, often reflecting economic growth, high living standards, and general wellbeing.