George owns a ranch in Montana. He pays $22,000 per year in insurance, $100,000 in wages,...

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George owns a ranch in Montana. He pays $22,000 per year in insurance, $100,000 in wages, and $23,000 in supplies. He could h

business economics

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Answer 1

Answer #1

Correct Answer:

D

Working note:

Accounting profit = revenue earned - explicit expenses incurred

Accounting profit = 200000 - (22000 + 100000 + 23000)

Accounting profit = $55000

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Answer 2

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