Laura's Pizza Place Incurs $800,000 Per Year in Explicit Costs

question 51

Multiple Choice

Laura's Pizza Place incurs $800,000 per year in explicit costs and $100,000 in implicit costs.The restaurant earns $1.3 million in revenues and has $5 million in net worth.Based on this information,what is economic profit for Laura's Pizza Place?

• A)$200,000
• B)$400,000
• C)$500,000
• D)$2.8 million

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Definitions:

Top-Down Processing

The cognitive process by which our brain makes use of information that has already been brought into the brain by one or more of the sensory systems.

Schemas

Cognitive structures that help us organize and interpret information, based on our accumulated knowledge and experiences.

Shape Constancy

The cognitive ability to recognize objects as having a constant shape despite changes in perspective, distance, or lighting.

Retinal Disparity

The slight difference in the images projected on the two retinas, which is used to perceive depth.