Author Question: If General Motors is earning only a normal profit, a. it is making economic profit b. it is ... (Read 48 times)

Ebrown · **on:** Jun 30, 2018

If General Motors is earning only a normal profit,
a. it is making economic profit
b. it is breaking even
c. it is suffering an economic loss
d. it is covering only explicit costs
e. it is covering only implicit costs

Question 2

Suppose a lawyer leaves his 50,000-a-year job and starts his own firm breeding pit bulls. In the first year, his accounting profit is 70,000 . The lawyer finances his new business with 100,000 from his savings account, which had earned 10 percent interest. His economic profit is
a. 10,000
b. 60,000
c. 70,000
d. -80,000
e. -90,000