Philip Owns and Operates a Gas Station

question 40

Multiple Choice

Philip owns and operates a gas station. Philip works 40 hours a week managing the station but doesn't draw a salary. He could earn $800 a week doing the same work for Terrance. The station owes the bank $100,000 and Philip has invested $100,000 of his own money. If Philip's accounting profits are $1,000 per week while the interest on his bank debt is $300 per week, the business's economic profits are

• A) -$100 per week.
• B) $200 per week.
• C) $0 per week.
• D) $700 per week.
• E) $1,000 per week.

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Definitions:

Carbon NMR

A spectroscopic technique that utilizes nuclear magnetic resonance to study and identify the carbon atoms within an organic molecule.

Chemical Shift

A measure in nuclear magnetic resonance (NMR) spectroscopy that indicates the environment of nuclear spins in molecules.

UV Spectra

The range of the electromagnetic spectrum with wavelengths shorter than visible light, often used to determine the absorption characteristics of molecules.

Electronic Transitions

Changes in the energy levels of electrons within molecules or atoms due to absorption or emission of light.