Suppose a Family-Owned Donut Shop Has $80,000 in Total Revenues

question 210

Multiple Choice

Suppose a family-owned donut shop has $80,000 in total revenues, $36,000 in rent, and $20,000 in additional operating costs. The husband and wife work in the shop and pay no wages to themselves or others. The economic profits from the donut shop are

• A) $24,000.
• B) less than $24,000.
• C) more than $24,000.
• D) $80,000.

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the smooth muscles and heart and glands, regulating bodily functions such as heart rate and digestion.

Innervation

The supply of nerves to a specific body part, responsible for its sensory and motor functions.

Skeletal Muscles

Muscles attached to bones that are responsible for voluntary movements of the body.

Deceptive

Intentionally misleading or creating a false impression in order to achieve a specific purpose.