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.

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Definitions:

Capabilities

The qualities or capacities that a person or entity possesses, enabling them to perform certain activities or functions.

Future Potential

The possible achievements or developments that an individual or entity can accomplish in the future.

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Standardized Intelligence Tests

Tests designed to measure intelligence through a set of standardized tasks and problems, providing a quantitative assessment of an individual's intellectual capabilities.