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The table below provides the annual revenues and costs for a family-owned firm producing catered meals.

Total Revenues ($)	500 000
​	​
Total Costs ($)	​
- wages and salaries	200 000
- risk-free return of 6% on owners' capital of 250 000	15 000
- rent	105 000
- depreciation of capital equipment	25 000
- risk premium of 8% on owners' capital of 250 000	20 000
- intermediate inputs	150 000
- forgone wages of owners in alternative employment	80 000
- interest on bank loan	10 000

TABLE 7-1

Refer to Table 7-1. The economic profits for this family-owned firm are

▸ -$105 000.

▸ -$10 000.

▸ $10 000.

▸ $115 000.

▸ $0.

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