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Noar Noar
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A year ago
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 salaries200 000
- risk-free return of 6% on owners' capital of 250 00015 000
- rent105 000
- depreciation of capital equipment25 000
- risk premium of 8% on owners' capital of 250 00020 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. To an accountant, this family-owned catering company is earning ________. To an economist, the same firm is earning ________.

▸ economic profits; economic losses

▸ zero profit; economic losses

▸ zero profit; normal profits

▸ positive profits; economic losses

▸ economic profits; economic profits
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
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zexman911zexman911
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A year ago
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Noar Author
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