Accounting profit will always be
A) more than economic profit.
B) equal to sunk costs.
C) less than economic profit.
D) equal to implicit costs.
Answer: A
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Which of the following brings only an increase in the quantity demanded of a good?
A) a decrease in income, assuming the good is an inferior good B) a rise in the price of a substitute good C) a fall in the price of the good itself D) an expectation that the good's price will rise in the future E) a decrease in income, assuming the good is a normal good
A 10 percent increase in the quantity of spinach demanded results from a 20 percent decline in its price. The price elasticity of demand for spinach is
A) 0.5. B) 2.0. C) 10.0. D) 20.0.
A chemical factory and a fishing club share a lake. The marginal social costs, private marginal costs, and marginal benefits from producing chemicals are in the figure above
The chemicals dumped into the lake have always harmed the fish, but now they begin to damage the fishing boats as well. As a result, the A) marginal social cost curve shifts leftward. B) marginal social cost curve shifts rightward. C) marginal benefit curve shifts leftward. D) marginal benefit curve shifts rightward.
Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family,
A) hamburgers and hot dogs are normal goods. B) hamburgers and hot dogs are substitutes. C) hamburgers and hot dogs are complements. D) hamburgers and hot dogs are inferior goods.