10
QuizMultiple Choice

Opportunity Cost — Quiz

Question 10 • Economics

Rescooperate Ice Cream Shop recently analyzed their books. They found that in the past year, they made $100,000 selling ice cream and spent $75,000 on supplies and factory space. The remaining $25,000 represents

Answer
A
expense.
B
revenue.
C
loss.
D
profit.

Explanation

Profit is the amount left after subtracting expenses from revenue. The shop earned $100,000 and spent $75,000, so $100,000 − $75,000 = $25,000. Therefore, the remaining $25,000 represents profit.

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