Question: 5. nicole owns a small pottery factory. she can make 1,000 pieces of pottery per year and sell them for 100 each. it costs

 

5. nicole owns a small pottery factory. she can make 1,000 pieces

5. nicole owns a small pottery factory. she can make 1,000 pieces of pottery per year and sell them for 100 each. it costs nicole 20,000 for the raw materials to produce the 1,000 pieces of pottery. she has invested 100,000 in her factory and equipment: 50,000 from her savings and 50,000 borrowed at 10 per cent. (assume that she could have loaned her money out at 10 per cent, too.) nicole can work at a competing pottery factory for 40,000 per year. the accounting profit at nicole's pottery factory is O 80000 O 75000 60000 O 55000

Step by Step Solution

3.44 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The correct answer is A Nicole owns a small pottery factory She ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!