wigglewiz asked:
nds $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.
Tanya’s economic profit is:
A. $175,000
B. $100,000
C. $75,000
D. -$25,000
The answer is A. 175.000 you get this answer by first adding up her expenses 200.000 plus 25.000 equal 225.000 now you subtract that from the 400.000 and her profit is 175.000 so she is making 75.000 more than she did when she was working for ad. agency.