The Following Is Cost Information for the Creamy Crisp Donut

question 259

Multiple Choice

The following is cost information for the Creamy Crisp Donut Company.Entrepreneur's potential earnings as a salaried worker = $50,000Annual lease on building = $22,000Annual revenue from operations = $380,000Payments to workers = $120,000Utilities (electricity, water, disposal) costs = $8,000Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000Entrepreneur's forgone interest on personal funds used to finance the business = $6,000Creamy Crisp's total economic costs are

• A)$286,000.
• B)$150,000.
• C)$94,000.
• D)$156,000.

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Definitions:

Inside Information

Non-public, material information about a company that could provide a financial advantage on the stock market if used for trading.

Financial Markets

Platforms and systems that facilitate the exchange of financial instruments like stocks, bonds, and currencies between investors.

Semi-Strong Efficiency

A form of market hypothesis that suggests all public information is already reflected in stock prices, thus making it impossible to achieve consistently above-average returns.

Information Of Any Kind

Refers to any type of data, facts, or details, regardless of the format or source.