IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

Theory of Cost

Economics

Suppose that a sole proprietors earning total revenue of Rs 1,20,000and is incurring explicit cost of R 90,000. If the owner could work for another company for Rs50,000 a year , we would conclude that: i. The firm incurring economic loss ii. The firm ids incurring economic profit iii. Total economic cost is Rs 210,000 iv. The firm is earning economic profit of Rs 30,000 How should I answer the above MCQ