Fred Is Considering Opening a Ski Shop in Colorado

question 26

Multiple Choice

Fred is considering opening a ski shop in Colorado.Assume Fred will incur the following costs: building rent = $100,000/year,inventory = $250,000/year,energy = $50,000/year,and labor (one clerk) = $10,000/year.In addition,Fred's current income as a computer programmer is $40,000 per year.Assuming Fred would earn $460,000 in revenues,he could expect to earn:

• A)an accounting profit of $10,000 per year.
• B)an accounting profit of $60,000 per year.
• C)an economic profit of $10,000 per year.
• D)an economic profit of $50,000 per year.

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Definitions:

Critical Periods

Specific times during development when certain skills or abilities are most easily learned, and the brain is especially sensitive to external influences.

Teratogen

Any agent that can disturb the development of an embryo or fetus, which may cause a birth defect.

Responsive

Being quick to react or respond appropriately to changes or requests, showing sensitivity to the needs or feelings of others.

Highly Active Fetus

A term used to describe a fetus that shows more frequent or vigorous movement in the womb than typically observed.