Geralt is a freelance witcher who could work for $35.000 a year as a trainer but instead runs his own business making revenue of $70,000 a year. His only business expenses are $5.000 for stable fees, $5,000 for a horse which could be sold at any time for $4,000 and $2,000 in ingredients. Geralf's economic profit is A. $70,000 B. $28,000 C. $23,000 D. $27,000 E. $35,000
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The horse can be sold for $4,000, so the revenue from selling the horse is $4,000. Show more…
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