As a waiter you earn $60,000 per year, including tips. Someone offers you a new job as an economic consultant, which pays $100,000 per year. To be a consultant, you'll need to rent an office, purchase supplies, and new computer equipment. We can conclude which of the following?

Choose one:

A. If the explicit cost for the consulting job is $20,000 per year, your economic profit is equal to $80,000.

B. If the explicit cost for the consulting job is $30,000 per year, your accounting profit is equal to $10,000.

C. If the explicit cost for the consulting job is $25,000 per year, your economic profit is equal to $15,000.

D. If the explicit cost for the consulting job is $20,000 per year, your accounting profit is equal to $20,000.

Answer rating: 100% (QA)

cIf the explicit cost for the consulting job is 25000 per year your economic profit ... View the full answer