Question
1. Lilly’sLumberyardhadthefollowingrevenuesandcostslastyear:
Costs
Lumber supplies
$80 000
Building rent
$40,000
Utilities insurance $20, 000
Employee salaries $150,000
Lilly’s salary $110,000
Revenues $400 000
If Lilly did not own a lumberyard, she would earn $115,000 per year as a store manager for Home Depot. Lilly’s Lumberyard had an economic cost of _____ and an economic profit of _____.
A) $225,000;-$75,000
B) $400,000;$35,000 C) $405,000;-$5,000
D) $210,000;$0
- Which of the following statements is (are)TRUE?
A) I,II, and III
B) III
C) II,III, and IV
D) III and IV
Microeconomics
