The table below provides the total revenues and costs for a small landscaping company in Total Revenues ($) 200,000 Total Costs ($) - wages and salaries -risk-free return of 3% on owner's capital of $25,000 - interest on bank loan - cost of supplies - depreciation of capital equipment - additional wages the owner could have earned in next best alternative - risk premium of 5% on owner's capital of $25,000 The economic profits for this firm are O A. $-12,050. O B. $-11,550. O c. $17,200. O D. $-12,800. OE. $19.200. 150,000 750 1,100 22,000 7,700 30,000 1,250

The table below provides the total revenues and costs for a small landscaping company in Total Revenues ($) 200,000 Total Costs ($) - wages and salaries -risk-free return of 3% on owner's capital of $25,000 - interest on bank loan - cost of supplies - depreciation of capital equipment - additional wages the owner could have earned in next best alternative - risk premium of 5% on owner's capital of $25,000 The economic profits for this firm are O A. $-12,050. O B. $-11,550. O c. $17,200. O D. $-12,800. OE. $19.200. 150,000 750 1,100 22,000 7,700 30,000 1,250

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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