ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Mr. Sievers is an entrepreneur who has decided to open a small advertising firm. He rents office space at a cost of $25, 000 per year, he has employed an assistant at a salary of $30, 000 per year, and he incurs annual utility and office supply expenses of $20, 000. His best alternative is to work elsewhere and to earn a salary of $50, 000 per year. How much annual revenue must his firm receive so that Mr. Sievers earns zero economic profit?
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$50, 000
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$25, 000
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$125, 000
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$100, 000
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Explanation:
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