The only owner-supplied input in a corporation is its equity, which is the value of the corporation's assets less any debts owed to its creditors. The equity of the XYZ Corporation this year is $1,000,000, and the owner forgoes a return of 8% per year by keeping the equity in the corporation. The accounting profits for the year are $50,000. This year, the XYZ Corporation O a. incurred an economic loss of $50,000. O b. earned zero economic profit. O c. incurred an economic loss of $30,000. earned an economic profit of $30 000

The only owner-supplied input in a corporation is its equity, which is the value of the corporation's assets less any debts owed to its creditors. The equity of the XYZ Corporation this year is $1,000,000, and the owner forgoes a return of 8% per year by keeping the equity in the corporation. The accounting profits for the year are $50,000. This year, the XYZ Corporation O a. incurred an economic loss of $50,000. O b. earned zero economic profit. O c. incurred an economic loss of $30,000. earned an economic profit of $30 000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The only owner-supplied input in a corporation is its equity, which is the value of the
corporation's assets less any debts owed to its creditors. The equity of the XYZ Corporation
this year is $1,000,000, and the owner forgoes a return of 8% per year by keeping the equity
in the corporation. The accounting profits for the year are $50,000. This year, the XYZ
Corporation
O a. incurred an economic loss of $50,000.
O b. earned zero economic profit.
O c. incurred an economic loss of $30,000.
O d. earned an economic profit of $30,000.
O e. earned an economic profit of $50,000.

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