Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon, Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per year. In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and incurred another $15,000 in expenses on equipment and hairdressing material. Based on this information, what is the amount of her explicit costs for the first year?

Aggregate supply increases when

a. wage rates or interest rates decrease while the economy's price level remains unchanged b. resource availability is reduced c. there are fewer workers d. there is less capital and the price level remains unchanged e. there are increased inflationary expectations of labor

In the long run, a firm should exit the industry if its total costs exceed its total revenues

a. True b. False Indicate whether the statement is true or false

If you are told that the blue cheese market on the moon is a monopoly, you would know that there

a. is only one seller of the blue cheese produced on the moon b. is only one buyer of the blue cheese produced on the moon c. is only blue cheese on the moon d. are close substitutes for blue cheese on the moon e. are only a few producers on the moon

In this graph, what has changed from equilibrium level E1 to equilibrium point E3?

a. Output has increased.
b. Output has decreased.
c. Price level has increased.
d. Price level has decreased.