Vicky quit her $ 75, 000 a year marketing executive job to open her own firm.  In Vicky's first year in business her total revenue equaled $ 180,000.  Vicky's explicit cost during the year totaled $ 80,000.  To start her business Vicky took $ 50,000 from her savings account that was paying an interest of 10% annually.  What is her economic profit for her first year in business?   A. -$26,000   B. -$ 25,000   C. $ 25,000   D. $ 24,000

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
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  1. Vicky quit her $ 75, 000 a year marketing executive job to open her own firm.  In Vicky's first year in business her total revenue equaled $ 180,000.  Vicky's explicit cost during the year totaled $ 80,000.  To start her business Vicky took $ 50,000 from her savings account that was paying an interest of 10% annually.  What is her economic profit for her first year in business?

      A.

    -$26,000

      B.

    -$ 25,000

      C.

    $ 25,000

      D.

    $ 24,000

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