Use the Following to Answer Questions

question 79

Multiple Choice

Use the following to answer questions :
Scenario: Betty's Cookie Shop
Betty runs a cookie shop where she sells cookies for $1 each.She employs five people,each of whom worked a total of 500 hours last year;she paid them $10 per hour.Her costs of equipment and raw materials add up to $75 000.Her business ability is legendary,and other companies have offered to pay Betty $100 000 to come to work for them.She also knows she could sell her cookie shop for $150 000.The bank in town pays an annual interest rate of 3% on all funds deposited with it.
-(Scenario: Betty's Cookie Shop) Use Scenario: Betty's Cookie Shop.Betty is trying to decide at what point she should stop selling cookies,and she knows that she cannot change the price of a cookie.She should stop selling cookies if her:

• A) economic profit is positive.
• B) explicit and implicit costs are less than her revenues.
• C) implicit costs are greater than her accounting profits.
• D) economic profit is equal to her accounting profit.

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Definitions:

Nucleus

The central and most important part of an object, movement, or group, forming the basis for its activity and growth; in cells, it is the membrane-bound structure that contains the chromosomes and controls the cell's activities.

Nucleolus

A structure found within the nucleus of the cell.

RNA Synthesis

The process of synthesizing ribonucleic acid (RNA) from a DNA template, a critical step in gene expression and protein production.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, which regulates the movement of substances in and out of the cell.