Economic profit equals accounting profit minus implicit costs
a. True
b. False
Indicate whether the statement is true or false
True
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Jose gets utility from the goods he consumes and also the income he earns. His utility function is given by U(q1,q2 ) = q1q2Y Derive Jose's demand equations
Does the fact that he derives utility directly from income affect his consumption in this case?
Figure 14.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that 50% of the used refrigerators in the market are lemons (low quality), how much will they be willing to pay for a used refrigerator?
A. $100 B. $200 C. $250 D. $300
What is the difference between commodity money and fiat money? Why do people accept fiat money in trade for goods and services?
What do economists mean when they say that economic resources or factors of production are scarce or limited in supply?
Please provide the best answer for the statement.