Which of the following statements is (are) correct? (x) Ann decides to open her own business and earns $84,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $56,000, $60,000, and $62,000. Ann's economic profit from running her own business is more than $24,000.
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Which of the following statements is (are) correct?
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(x) Ann decides to open her own business and earns $84,000 in accounting profit the first year. When
deciding to open her own business, she turned down three separate job offers with annual salaries of $56,000, $60,000, and $62,000. Ann's economic profit from running her own business is more than $24,000.
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(y) Bernadette has decided to start her own recording studio. To purchase the necessary equipment, Bernadette withdrew $15,000 from her savings account, which was earning 3.0% interest, and borrowed an additional $25,000 from the bank at an interest rate of 7.5%. Bernadette's annual
opportunity cost of the financial capital that has been invested in the business is more than $2,250. -
(z) Maureen decides to open her own business and earns $25,000 in economic profit the first year. If Maureen faces implicit costs then her accounting profit is necessarily larger than $25,000.
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(x), (y) and (z)
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(x) and (y), only
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(x) and (z), only
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(y) and (z), only
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(z) only
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