Marge Opens an Oxygen Bar in a Building She Owns

question 161

Multiple Choice

Marge opens an oxygen bar in a building she owns.She used to rent the building to her brother in law for $10,000 a year.To open the oxygen bar,Marge quit her job as a physician assistant,which paid $80,000 a year.As a bar owner,Marge has to pay $40,000 a year wages for her bartender,spend $25,000 a year for supplies,and the utilities bill is $9,500 a year.To cover the start-up costs,she used up all of her savings which earned $4,600 in interest.Total annual revenue at the end of the year is $450,000.Marge's economic profit is:

• A) $450,000
• B) $375,500
• C) $74,500
• D) $280,900
• E) $410,000

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Definitions:

Public Service Announcements

Broadcasted messages aimed at informing the public about important issues or events and influencing public attitudes or behavior for societal benefit.

Drug Use

The consumption of legal or illegal substances for their psychoactive effects, often leading to dependence or addiction.

Adolescents

Refers to young people in the transitional phase of growth and development between childhood and adulthood, typically between ages 13 and 19.

Harm Reduction Programs

Initiatives aimed at minimizing the negative consequences associated with certain behaviors, such as drug use or sexual activity, without necessarily stopping the behavior.