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Suppose an Entrepreneur Starts a Business Earning $2M in Revenue

Question 13

Multiple Choice

Suppose an entrepreneur starts a business earning $2M in revenue in 2009 while at the same time incurring $1.8M in costs.If the entrepreneur's best outside alternative employment opportunity is to earn $300K,what are the firms accounting and economic profits?


A) $200K,-$100K
B) $200K,$100K
C) $300K,$100K
D) $300K,-$100K
E) $200K,$200K

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