A business owner makes 50 items a day. He spends 8 hours in producing those items. If hired elsewhere he could have earned $10 an hour. The item sells for $10 each. Production occurs seven days a week. If the explicit costs total $10,000 a month, the accounting profit for the month equals:
a. $1,760
b. $2,240
c. $11,760
d. $5,000
d
Economics
You might also like to view...
How does the ratio of CEO pay in the U.S. compare with that ratio in Japan?
A. It is much lower. B. It is slightly lower. C. It is slightly higher. D. It is much higher.
Economics
Explain what is meant by predatory pricing, and the inherent difficulties involved with predatory pricing from a firm's point of view.
What will be an ideal response?
Economics
________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors
A) Absolute advantage B) Specialization C) Autarky D) Comparative advantage
Economics
If the GDP deflator rises from 185 to 190, what is the rate of inflation between the two years?
A) 270% B) 50% C) 5% D) 2.7%
Economics