Bessie Wants to Calculate the Accounting and Economic Profits of Her

question 76

Multiple Choice

Bessie wants to calculate the accounting and economic profits of her cattle farm in Alberta.She pays $30 000 per year in overhead,$80 000 in wages,and $20 000 in insurance.She forgoes $30 000 per year that she could make as a teacher.If her total revenue equals $140 000,that means her accounting profit is _____ and her economic profit is _____.

• A) $10 000;-$20 000
• B) $30 000;-$30 000
• C) -$10 000;-$10 000
• D) $60 000;$30 000

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Definitions:

Mousetrap

A device designed to catch or kill mice, typically involving a spring-loaded mechanism.

Alternative Hypothesis

A statement in hypothesis testing that proposes a difference or association, contrasting with the null hypothesis which suggests no effect.

Physicians

Medical professionals who are qualified to diagnose and treat diseases, prescribe medications, and perform medical procedures.

P-value

The probability of observing results at least as extreme as those measured when the null hypothesis is true.