1 Lilly’sLumberyardhadthefollowingrevenuesandcostslastyear CostsLumber supplies

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

  1. 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