Refer to Scenario 7.5 below to answer the question(s) that follow.SCENARIO 7.5: You own and are the only employee of a company that customizes bicycles. Last year your total revenue was $60,000. Your costs for rent and supplies were $25,000. To start this business you invested an amount of your own capital that could pay you a $45,000 a year return.Refer to Scenario 7.5. A yearly normal return for your company is
A. $25,000.
B. $35,000.
C. $45,000.
D. $70,000.
Answer: C
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What is the relationship among the current account, the financial account, and the balance of payments?
What will be an ideal response?
The results of the ultimatum game illustrate that
a. people's behavior is often driven by an innate sense of fairness. b. homo economicus is a good description of people's behavior. c. self-interest brings out the most efficient economic outcome. d. people will always prefer a small gain to no gain.
When individuals increase their personal wealth through production and exchange, they
a. reduce the wealth of others. b. must rely heavily on government intervention and regulation. c. increase the wealth of others. d. must be selfish and greedy.
A firm estimates that when output is 10, its total costs are $900. It also finds that when output is 11, its total costs are $920. The marginal cost of the eleventh unit of output is:
A. $20 and the minimum point of the average total cost occurs at an output level less than 11. B. $20 and the minimum point of the average total cost occurs at an output level greater than 11. C. $90 and the average total cost is minimized. D. $90 and the minimum point of the average total cost occurs at an output level greater than 11.