Florence is considering going into business for herself and has developed the following estimates of monthly costs and revenues to aid her in her decision-making process
She has decided to house the business in a building that she already owns, although she could rent the building to someone else for $1,000 per month. Estimated payments for utilities (electricity, natural gas, water, and telephone) are $475 per month. She will hire one employee at a total cost of $1,100 per month. Inventory is estimated to cost $2,800 per month. Finally, Florence earns $3,000 a month in her current job. a. How much monthly revenue would Florence have to take in to earn 0 economic profit? b. Assume that Florence has estimated her monthly revenue to be $9,000. In this case, Florence would earn an accounting profit (loss) of ________, and an economic profit (loss) of ________. c. Assume instead that Florence does not own a building, and that she will have to rent a building for $1,000 per month (all other estimates remain the same). In this case (assuming estimated monthly revenue is still $9,000), Florence would earn an accounting profit (loss) of ________, and an economic profit (loss) of ________. Fill in the blank(s) with correct word
a. $8375.
b. Accounting profit = $4,625. Economic profit = $625.
c. Accounting profit = $3,625. Economic profit = $625.
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Consumer Willingness to Pay Tom $40 Dick $30 Harriet $25 The table above lists the highest prices three consumers, Tom, Dick and Harriet, are willing to pay for a short-sleeved polo shirt. If the price of one of the shirts is $28 dollars
A) Tom will buy two shirts, Dick will buy one shirt and Harriet will buy no shirts.
B) Tom will receive $12 of consumer surplus from buying one shirt.
C) Tom and Dick receive a total of $70 of consumer surplus from buying one shirt each. Harriet will buy no shirts.
D) Harriet will receive $25 of consumer surplus since she will buy no shirts.
When you are working, you pay more unemployment insurance than you get from it and when you're unemployed, you get more from it than you pay in. That's why the insurance is called
a. an automatic stabilizer b. an automatic destabilizer c. a discretionary stabilizer d. a destabilizing influence on the Phillips curve e. a stabilizing influence on the Phillips curve
The antitrust case that ended the use of the "rule of reason" by the Supreme Court was the ________ case.
A. American Tobacco B. ALCOA C. U.S. Steel D. IBM
When countries specialize in producing those goods in which they have ________, they maximize their combined output and allocate their resources more efficiently.
A. an absolute advantage B. a greater demand C. export subsidies from the government D. a comparative advantage