Corinne is offered a job with a salary of $70,000, which she turns down to start her own business. She uses $20,000 of her own savings to help start the business, savings that had been providing her a return of $1,000 per year. Over her first year in business, Corinne collects total revenue of $180,000 and must cover explicit costs of $105,000. During her first year in business, Corinne's accounting profit is profit is and her economic O $110,000; $4,000 $75,000; -$16,000 O $110,000; -$16,000 $75,000; $4,000

Corinne is offered a job with a salary of $70,000, which she turns down to start her own business. She uses $20,000 of her own savings to help start the business, savings that had been providing her a return of $1,000 per year. Over her first year in business, Corinne collects total revenue of $180,000 and must cover explicit costs of $105,000. During her first year in business, Corinne's accounting profit is profit is and her economic O $110,000; $4,000 $75,000; -$16,000 O $110,000; -$16,000 $75,000; $4,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Marah is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional costs for cups and lemonade mix if she decides to open the stand.
Julie owns a store that sells previously-owned video games. Last year, Julie generated $250,000 in total revenues. Her explicit costs were $175,000, which included wages paid to her employees and payments made to her and suppliers. Last year Julie also received an offer of $75,000 per year to manage a retail outlet of a chain-store competitor. Based on this information: accounting profit = $0; economic profit = −$75,000. accounting profit = $175,000; economic profit = $75,000. accounting profit = $75,000; economic profit = $0. accounting profit = $25,000; economic profit = $100,000. accounting profit = $75,000; economic profit = −$100,000.
Please show calculations with formula.
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