Economic profit is defined as
a. price minus the sum of average fixed and marginal cost
b. total revenue minus total implicit cost
c. total revenue minus the average total cost
d. total revenue minus the sum of implicit and explicit costs
e. consumer surplus minus total explicit cost
D
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Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, with other things remaining the same, we would expect:
A) the price of steel to fall. B) the demand curve for steel to shift to the right. C) the demand curve for plastic to shift to the left. D) nothing to happen to steel because it is only a substitute for plastic. E) the demand curve for steel to shift to the left.
Which of the following is a definition of the aggregate production function?
a. the relationship describing which inputs an economy can use with different quantities of labor b. the relationship describing how much labor an economy can supply with different quantities of capital c. the relationship describing how much output an economy can produce with different quantities of labor d. the relationship describing what services an economy can produce with different quantities of capital e. the relationship describing how much output a firm can produce with different quantities of capital
After getting a raise at work, Jasper now regularly buys steak instead of chicken. Which factor of demand has influenced Jasper's demand for steak?
A. Price of a substitute good B. Income C. Preferences D. Price of a complementary good
Starting from long-run equilibrium, a sharp drop in oil prices results in ________ output in the short run and ________ output in the long run.
A. lower; higher B. higher; higher C. higher; potential D. lower; potential