Myron Worked at a Factory Where He Earned $20,000 Per

question 39

Multiple Choice

Myron worked at a factory where he earned $20,000 per year.One day,he quit his job and opened a bumper sticker business.After one year,his business earned $60,000 in sales revenue and he incurred $30,000 in direct business expenses.If he received no salary from the new business,what is his economic profit?

• A)$10,000
• B)$30,000
• C)$60,000
• D)$20,000
• E)$50,000

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Definitions:

Trade-Off

The concept of giving up one benefit in order to gain another, greater benefit, highlighting the necessity of making choices between competing options.

Wage Increases

Adjustments upwards in the compensation that workers receive for their labor, often reflecting economic conditions, productivity, and negotiation outcomes.

Union Members

Individuals who belong to a labor union, an organization that represents workers' interests in negotiations with employers.

Exclusive Union

A labor union arrangement where only members of the union can be employed by the firm or within a certain industry.