Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year.Last year, Christine's accounting profit was ________ and her economic profit was ________.
A. $49,000; $9,000
B. $9,000; 0
C. $100,000; $64,000
D. $64,000; $49,000
Answer: A
You might also like to view...
If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by a(n):
a. increase in the supply of the good. b. increase in the demand for the good. c. decrease in the demand for the good. d. decrease in the supply of the good.
What causes the Tragedy of the Commons? (i) Social and private incentives differ. (ii) Common resources are not rival in consumption and are not excludable. (iii) Common resources are not excludable but are rival in consumption
a. (i) only b. (ii) only c. (i) and (ii) only d. (i) and (iii) only
Assume a tomato farmer owns one truck and employs one driver. One Saturday a month he brings one truck load of tomatoes to the Farmer's Market
Over time he discovers that the demand for his tomatoes has increased dramatically as a result of increased marketing and advertising for the market. Explain both the short run and the long run impact on the equilibrium price and quantity of the farmer's tomatoes. Explain in terms of elasticity of supply.
There are several important differences between the Fed and the European Central Bank (ECB). What are they?
What will be an ideal response?