Scenario6-1AspartofanestatesettlementMaryreceived$1million.ShedecidedtousethemoneytopurchaseasmallbusinessinAnywhere,USA.Herbusinessoperatesinaperfectlycompetitiveindustry.IfMarywouldhaveinvestedthe$1millioninarisk-freebondfundshecouldhaveearned$100,000eachyear.ShealsoquitherjobwithLucky.ComInc.todevoteallofhertimetohernewbusiness.HersalaryatLucky.ComInc.was$75,000peryear.RefertoScenario6-1.Attheendofthefirstyearofoperatinghernewbusiness,Mary’saccountantreportedanaccountingprofitof$150,000.WhatwasMary’seconomicprofit? A: -$150,000 B: -$50,000 C: -$25,000 D: $25,000
Scenario6-1AspartofanestatesettlementMaryreceived$1million.ShedecidedtousethemoneytopurchaseasmallbusinessinAnywhere,USA.Herbusinessoperatesinaperfectlycompetitiveindustry.IfMarywouldhaveinvestedthe$1millioninarisk-freebondfundshecouldhaveearned$100,000eachyear.ShealsoquitherjobwithLucky.ComInc.todevoteallofhertimetohernewbusiness.HersalaryatLucky.ComInc.was$75,000peryear.RefertoScenario6-1.Attheendofthefirstyearofoperatinghernewbusiness,Mary’saccountantreportedanaccountingprofitof$150,000.WhatwasMary’seconomicprofit? A: -$150,000 B: -$50,000 C: -$25,000 D: $25,000
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