ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A woman recently quit her job as a teacher, which earned her $75/day, to become a tailor. She earns $85/day, during that day she spends a total of $25 on materials. What is her Economic Profit?
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$75
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$15
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-$75
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-$15
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Explanation:
Detailed explanation-1: -Which of the following statements regarding accounting profits, opportunity costs, and economic profits is true? If accounting profits are less than opportunity costs, there will be economic losses.
Detailed explanation-2: -Economic profit is the difference between the total revenue received by a business and the total implicit and explicit costs of a firm. It’s often the extra profit left over after considering the next best alternative investment, and can be either positive or negative in value.
There is 1 question to complete.