Veruca sells therapeutic bath salts on the Internet. Her annual revenue is $52,000 per year, the explicit costs of her business are $14,000, and the opportunity costs of her business are $17,000 per year. What is her economic profit?
A) $14,000
B) $21,000
C) $31,000
D) $38,000
Answer: B
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Which of the following will be an efficient payment scheme for a defendant's attorney, who is experienced in handling similar cases in the past?
a. Contingency fees b. Capitation fees c. Hourly billing d. Quality based billing
A fair price is set where P = ATC
Indicate whether the statement is true or false
Starting from short-run equilibrium, the following occurs: personal income taxes are cut, business taxes are cut, and labor productivity rises. What is the effect on the price level and Real GDP in the short run?
A) Real GDP rises and the price level necessarily falls. B) Real GDP rises and the price level necessarily rises. C) Real GDP falls and the price level necessarily remains the same. D) Real GDP rises and the effect on the price level cannot be determined. E) Real GDP rises and the price level necessarily remains the same.
If the real rate of return is 2 percent, and the inflation rate is 2 percent, then the nominal interest rate must be:
A. ?4 percent. B. ?2 percent. C. 4 percent. D. 2 percent.