Nancy owns and operates a drug store that generates total revenues worth $30 million in a particular year. Her accounting costs for the year are $25 million. She could have earned $3 million in this year, if she had worked as a consultant for a pharmaceutical firm. Further, she could have earned 5 percent interest on $40 million of her own money that she invests in the business this year. Nancy's
accounting profit in this year is _____ and her economic profit is _____.
a. $5 million; zero
b. $5 million; $3 million
c. $5 million; $8 million
d. zero; $3 million
e. $3 million; $43 million
a
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A) 1.7 million gallons per month. B) 1.8 million gallons per month. C) 1.6 million gallons per month. D) 1.9 million gallons per month.
Public parks and libraries are examples of
a. economic goods. b. free goods. c. intangible goods. d. public goods.
A precept is:
A. a proposition that is logically true based on the assumptions of a model. B. the application of models combined with judgment. C. a set of equations that define a model. D. a policy rule that concludes that a particular course of action is preferable.
A monopoly will maximize profits at the level of output at which
A) MR = MC. B) MR = AFC. C) MC = ATC. D) MC = P.