The Sweet Success Bakery sells 500 cakes at a price of $10 per cake. Its total economic costs for producing 500 cakes are $500. The Sweet Success Bakery's economic profits are
A. $100.
B. $3,500.
C. $4,500.
D. indeterminate from this information.
Answer: C
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Consider the market for high-end wine. Statistics show that wealthier families spend a greater proportion of their income on high-end wine than do poorer families. If households' incomes rise substantially during an economic recovery, then we can expect
a. an increased demand for high-end wine. b. an increased supply of high-end wine. c. a lower price for high-end wine. d. the demand curve for high-end wine to shift to the left.
Why do people donate less when it is costlier to give?
What will be an ideal response?
If the interest rate were 10 percent, how much would people be willing to pay for a stock that was certain to yield a $2 per share stream of net earnings continuously in the future?
a. $2 b. $10 c. $20 d. $100
Vault cash would be considered
A. a primary reserve. B. a secondary reserve. C. both a primary and a secondary reserve. D. neither a primary nor a secondary reserve.