A small business owner earns $50,000 in revenue annually. The explicit

A small business owner earns $50,000 in revenue annually. The explicit annual costs equal $30,000. The owner could work for someone else and earn $25,000 annually. The owner’s business profit is ________ and the economic profit is ________.

A) $20,000; $5,000
B) $20,000; -$5,000
C) $25,000; -$5,000
D) $45,000; -$5,000

ANSWER

B