In one hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets. Sue's opportunity cost of producing a cap is _____ jackets and Tessa's opportunity cost of producing a cap is ____ jackets.
Fill in the blank(s) with the appropriate word(s).
Ans: Tessa; both Sue and Tessa gain
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If a firm doesn't make an economic profit it will shut down
Indicate whether the statement is true or false
Even the demand for a necessity such as gasoline will respond to a change in price, especially over a longer time horizon
a. True b. False Indicate whether the statement is true or false
Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table.Number of Mugs Per DayTotal Cost Per Day0$101$142$193$254$325$406$49 If the market for mugs is perfectly competitive, and mugs sell for $7.50 each, then at his profit-maximizing level of output, Chris will earn a ________ of ________ per day.
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