Joey's Lawncutting Service Rents Office Space from Joey's Dad for $300

question 64

Multiple Choice

Joey's Lawncutting Service rents office space from Joey's dad for $300 per month.A similar office space in the same building rents for $545 per month.What is the economic profit earned by Joey's dad?

• A) Profit of $245
• B) Profit of $100
• C) Loss of $100
• D) Loss of $245

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Definitions:

Utility Maximization

The process of choosing the most satisfying option from a set of alternatives based on preferences.

Utility Maximization

The economic principle that consumers attempt to get the greatest satisfaction possible from their purchases and consumption, given their limited resources.

Rational Consumer

An individual who seeks to maximize their utility or satisfaction from consumption under their budget constraints.

Utility Maximization

A principle in economics that suggests individuals or firms seek to allocate their resources in a way that maximizes their satisfaction or utility.