Suppose Joe Starts His Own Business

question 16

Multiple Choice

Suppose Joe starts his own business. In the first year the business earns $100,000 in revenue and incurs $85,000 in explicit costs. In addition, Joe has a standing offer to come work for his brother for $40,000 per year. Joe's accounting profit is _________ and Joe's economic profit is __________.

• A)-$25,000 and $15,000
• B)$15,000 and $65,000
• C)$15,000 and $60,000
• D)$15,000 and -$25,000

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Definitions:

Propaganda Model

The assertion that media companies, as businesses, will transmit content that reflects their commercial interests.

Privileged Classes

Social groups granted special advantages or benefits by virtue of their position in the social hierarchy.

Mainstream Media

Traditional forms of mass communication, such as television, newspapers, and radio, considered to reach and be accepted by the largest audience.

Corporate Interests

The objectives, agendas, or motivations of businesses and corporations, often aimed at maximizing profit, expanding market share, and influencing policy and regulation.