Nancy Owns and Operates a Drug Store That Generates Total
Nancy owns and operates a drug store that generates total revenues worth $30 million in a particular year. Her accounting costs for the year are $25 million. She could have earned $3 million in this year, if she had worked as a consultant for a pharmaceutical firm. Further, she could have earned 5 percent interest on $40 million of her own money that she invests in the business this year. Nancy's accounting profit in this year is _____ and her economic profit is _____.
A)$5 million; zero
B)$5 million; $3 million
C)$5 million; $8 million
D)zero; $3 million
E)$3 million; $43 million
The equity capital of a privately owned firm includes:
A)the owner's own dollars put into the firm.
B)the cost of raw materials.
C)the cost of labor resource used in production.
D)economic rent only.
E)the value added at each stage of production.
Refer to the Table 9.3. The net income of Max Computers is:
Refer to Table 9.3. The economic profit of Max Computers is: