Andrea starts her own business, which earns $75,000 in accounting profit in the first year. When deciding to open the business, Andrea withdrew $10,000 from savings, which earned 5 percent interest. Andrea also turned down three separate job offers with annual salaries of $45,000, $55,000, and $65,000. What is Andrea's economic profit from this business? O a. $0 O b. $-500 O c. $9,500 O d. $65,000 O e. none of the above

Andrea starts her own business, which earns $75,000 in accounting profit in the first year. When deciding to open the business, Andrea withdrew $10,000 from savings, which earned 5 percent interest. Andrea also turned down three separate job offers with annual salaries of $45,000, $55,000, and $65,000. What is Andrea's economic profit from this business? O a. $0 O b. $-500 O c. $9,500 O d. $65,000 O e. none of the above

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 39P: A firm is considering an investment that will earn a 6 rate of return. If it were to borrow the...

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