Use the following information to answer the next question. harvey quit his job at state university where he earned $45,000 a year. he figures his entrepreneurial talent or foregone entrepreneurial income to be $5,000 a year. to start the business, he cashed in $100,000 in bonds that earned 10% interest annually to buy a software company, extreme gaming. in the first year, the firm sold 11,000 units of software at $75 each. of the $75, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. the economic profits of harvey’s firm in the first year were:
a) $160,000.
b).$280,000.
c) $155,000.
d) $220,000.
Answers: 2
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Use the following information to answer the next question. harvey quit his job at state university w...
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