The Following Is Cost Information for the Creamy Crisp Donut

question 59

Multiple Choice

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

• A) has lower implicit costs, including a normal profit, than its explicit costs.
• B) is earning a normal profit but not an economic profit.
• C) is earning an economic profit.
• D) is suffering an economic loss, when implicit costs are considered.

---

Definitions:

Bull

Symbolically represents strength, fertility, and power across various cultures and can be a significant motif in art, mythology, and literature.

Folk Art Movement

A style of art that reflects cultural heritage, traditions, and the community life of ordinary people, typically produced by self-taught or minimally trained artists.

Hamada Shoji

A renowned Japanese ceramic artist and a key figure in the mingei (folk craft) movement, known for his stoneware pieces.

Jiro Yoshihara

A Japanese painter and influencer in the post-World War II art scene, known as the founder of the avant-garde Gutai group.