A Firm Has $200 Million in Total Revenue and Explicit

question 26

Multiple Choice

A firm has $200 million in total revenue and explicit costs of $190 million. If its owners have invested $100 million in the company at an opportunity cost of 10 percent interest per year, the firm's accounting profit is:

• A) $400 million.
• B) $100 million.
• C) $80 million.
• D) $10 million.
• E) zero.

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Definitions:

Cardiovascular System

The body's system comprising the heart and blood vessels, responsible for circulating blood and oxygen throughout the body.

At Least Two Atoms

A molecule that consists of two or more atoms bonded together, representing the smallest fundamental unit of a chemical compound that can take part in a chemical reaction.

Molecules

The smallest units of a chemical substance that can exist independently while retaining the composition and chemical properties of the substance.

Anatomical Position

The standard position in which the body is standing with feet together, arms at the side, and head, eyes, and palms facing forward, used as a reference point in anatomical nomenclature.