Suppose a Firm Has an Annual Budget of $200,000 in Wages

question 6

Multiple Choice

Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital.The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere.The firm earns revenues of $360,000 per year.To receive a normal profit, the firm described above would have to

• A) Experience $10,000 less in cost.
• B) Receive $90,000 more in revenue.
• C) Receive $10,000 more in revenue.
• D) Do nothing since it already earns a normal profit.

---

Definitions:

Bipolar I Disorder

A psychiatric condition characterized by significant mood swings, including manic episodes with or without depressive episodes.

Bipolar II Disorder

A psychiatric disorder characterized by episodes of significant depression and hypomania, but not the full-blown manic episodes seen in Bipolar I Disorder.

Cyclothymic Disorder

A mood disorder characterized by periods of hypomanic and depressive symptoms that are not severe enough to qualify as bipolar disorder.

Unipolar Depression

A major depressive disorder characterized by a persistent feeling of sadness or a lack of interest in external stimuli, differing from bipolar disorder by the absence of manic or hypomanic episodes.