To receive a normal profit, the firm described above would have to
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Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital. The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $360,000 per year.
To receive a normal profit, the firm described above would have to
| Experience $10,000 less in cost. | |
| Receive $90,000 more in revenue. | |
| Receive $10,000 more in revenue. | |
| Do nothing since it already earns a normal profit. |
10 years ago
To receive a normal profit, the firm described above would have to
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suppose_a_firm_has_an_annual_budget.doc
