Philip Owns and Operates a Gas Station

question 39

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 $700 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 $400 per week, the business's economic profits are

• A)$0 per week.
• B)-$100 per week.
• C)$600 per week.
• D)$300 per week.
• E)$1,000 per week.

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Definitions:

Complex Conjugate

The pair of a complex number, changing the sign of its imaginary part.

Simplify

Making a complex numerical or algebraic expression easier to handle by reducing it to a more basic form.

Square Root Property

A mathematical rule stating that if \(x^2 = a\), then \(x = \pm\sqrt{a}\), which is used to solve quadratic equations.

Equation

A mathematical statement that asserts the equality of two expressions, typically written in the form \(A = B\), where \(A\) and \(B\) are expressions.