Until Recently,Rosemarie Worked as an Accountant,earning $30 000 Annually

question 98

Multiple Choice

Until recently,Rosemarie worked as an accountant,earning $30 000 annually.Then,she inherited a piece of commercial real estate that had been renting for $12 000 annually.Rosemarie decided to leave her job and operate a Peruvian restaurant in the space she inherited.At the end of the first year,her books showed total revenues of $260 000 and total costs of $230 000 for food,utilities,cooks,and other supplies.Her economic profit at the end of 1 year is:

• A) $230 000.
• B) $30 000.
• C) $0.
• D) -$12 000.

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Definitions:

Choice Set

The collection of all possible options available to a decision-maker in a given scenario.

Clothing

Wearing apparel created from various fabrics and materials, intended to cover the body and protect it from environmental elements.

Food

Any nutritious substance that people or animals eat or drink to maintain life and growth.

Choice Set

The collection of all possible options or alternatives available to a consumer or decision-maker in a given context.