Question

Suppose that Tyler is an entrepreneur. He works as an economic consultant and because of his quick wit, mastery of economics, and dashing good-looks, Tyler is offered a position that pays $7,000 per month. Tyler declines this offer because he thinks it is less than a normal profit. What does this mean? A) Tyler's dad worked as an economic consultant during the 1980s and earned a higher salary then (controlling for inflation). A normal profit implies that the incomes of people in similar industries should be similar over time. B) Tyler would have to give up the chance to earn more than $7,000 if he were to o accept this position. A normal profit refers to the profit that an entrepreneur can expect to earn in other business opportunities. C) Tyler's wife works as a legal consultant and she is paid more than $7,000 per month. A normal profit implies that consultants in all industries earn the same amount. D) Egnomists aren't normal and don't like earning money in the same way that other people do. E) Tyler's friend works in Europe as an economic consultant and earns a higher salary. The $7,000 per month must be less than a normal profit if European consultants are being paid more.

Answer 1

B) Tyler would have to give up the chance to earn more than $7,000 if he were to accept this position. A normal profit refers to the profit that an entrepreneur can expect to earn in other business opportunities.

Step-by-step explanation:

Since in the question it is mentioned that Tyler is an entrepreneur and works as a consultant of economics. As taylor offered a position where he received $7,000 per month but he declines it as he knows that he can earn above $7,000 so he should give him a chance to earn above $7,000.

But in this case if he accept that he will get a lower of normal profit so he should look other business opportunities in order to earn more than $7,000

Therefore the correct option is b.