earn a 16 percent annual rate of return on capital. What is
the opportunity cost for Mr. Buford’s capital?
c. What are the economic profits for Spruce Decor in 2019?
d. If Spruce Decor’s economic profits were typical of
furniture makers in 2019, what would you expect to
happen in this industry? Explain.
11. The table below provides the total revenues and costs for a dental
practice for one year.
Total Revenues ($)Total Costs ($)Wages and salariesRisk-free return of 3% on owner’s capital of $1 000
000Interest on bank loanCost of supplies