If, as an entrepreneur, I am earning accounting profits of $60,000 per year and the opportunity cost of my time is $50,000
A) I am earning economic profits of $10,000.
B) I am earning economic profits of $60,000.
C) I am earning economic losses of $10,000.
D) I should close my business.
A
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Positive economics does not require us to believe that actual happiness is the same as utility as modeled in economic theory.
Answer the following statement true (T) or false (F)
The largest recipient of remittances in dollars in the year 2008 was:
(a) India. (b) Mexico. (c) Pakistan. (d) Philippines.
A firm purchases more capital equipment. We would expect to observe
A) a decrease in the supply curve of labor to this firm. B) an increase in the supply of labor for this firm. C) an increase in the demand for labor by this firm. D) an increase in the wage rate paid for labor by this firm.