Beth recently began running her husband's lumber mill. Last month she took in $5,000 in sales revenue and paid $3,400 in out-of-pocket costs. She made an economic profit last month if her implicit costs were:
a. $1000.
b. $1600.
c. $2400.
d. $3300.
a
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A Nash equilibrium is defined as
A) earning zero economic profit in the long run. B) forming a cartel with strong penalties for cheaters. C) relying on other game players to realize the benefit of cooperation. D) each player taking the best possible action given the action of the other player. E) each player taking the action that is best for all the players.
Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If 8,000 pounds of pecans are sold
A) marginal benefit is equal to marginal cost. B) the deadweight loss is equal to economic surplus. C) producer surplus equals consumer surplus. D) the marginal benefit of each of the 8,000 pounds of pecans equals $9.
The Do-Good Company produces goods that provide benefits to society-at-large. If consumers of Do-Good's products fail to take external benefits into account
A) the demand curve will be too far to the left. B) the supply curve will be too far to the left. C) the demand curve will be too far to the right. D) the supply curve will be too far to the right.
Commentators on the presidential election between Bush and Gore in 2000 believe that the presence of Nader, a third party candidate:
A. drew votes away from Gore and caused him to lose the election. B. pushed more people to vote for Bush than otherwise would have, causing him to win the election. C. drew votes away from Bush and caused him to lose the election. D. drew votes away from Bush and caused him to win the election.