Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. At the end of the day, Jerry could have produced:
A. 14 dishes and 7 fences.
B. 12 dishes and 6 fences.
C. 10 dishes and 5 fences.
D. 6 dishes and 4 fences.
D. 6 dishes and 4 fences.
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Refer to above figure. Suppose the European government provides Airbus with a subsidy of $4 for each airplane sold, and that the subsidy convinces Boeing to exit the Hungarian market. Now Airbus would be the monopolist in this market
What price would they charge, and what would be their total profits?
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When a firm is earning zero economic profits
A) accounting profit is zero. B) total revenue is greater than total cost. C) P = ATC. D) P is greater than ATC.
If a market is productively efficient,
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