Jacqui decides to open her own business and earns 50000 in a

Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she withdrew $20,000 from her savings, which earned 5 percent interest. She also turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jacqui\'s economic profit from running her own business?

$-56,000

$-6,000

$4,000

$19,000

Solution

As The economic profit from rejecting three job offers is $5000 and a loss of $1000 in the form of lost interest thus total economic profit = $5000-$1000 = $4000

So correct Answer is C:- $4000