Assume Brad Worked as a Contractor for a Year and Had

Assume Brad worked as a contractor for a year and had revenues of $120,000 and explicit cost of $70,000.If he could have been paid $80,000 working for a computer company, his:

A) accounting profit equaled $10,000 and he would be rational to stop working as a contractor.
B) accounting profit equaled $50,000 and he would be rational to continue working as a contractor.
C) economic profit equaled $50,000 and he would be rational to continue working as a contractor.
D) economic profit equaled -$10,000 and he would be rational to stop working as a contractor.

Correct Answer:

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