A business owner makes 100 . items a day. Each day he/she contributes 8 hours to produce those items. If hired, elsewhere he/she could have earned $250 an hour. The item sells for $15 each. Production does not stop during weekends. If the explicit costs total $150,00 . for 30 days, the economic profit for the month equals:
a. $300,000
b. $60,000
c. $450,000
d. $240,000
d
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Refer to Figure e. Brandon and Allie want to go on a date one summer evening. Allie is a Red Sox fan, while Brandon is a Mets fan. Both teams are playing that evening, but not against each other. Each would rather watch their favorite team, but neither can force the other to watch a particular game, and each is willing to suffer through the other's game if it means time together. If Brandon watches the Mets, what is Allie's best response?
A. Allie should watch the Red Sox.
B. Allie should watch the Mets.
C. It does not matter which Allie watches; she is indifferent between the Red Sox and the Mets.
D. Allie should not consider Brandon's choice when making her decision.
Firms that spend a large amount of money on advertising a particular product are likely to be providing consumers with
a. information about the availability of the product. b. information about product price. c. a signal of product quality. d. a good example of wasted resources.
Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on all income above $70,000. Family A has income of $100,000 while Family B has income of $40,000. The marginal tax rates faced by the two families are
A) 40 percent on A and 10 percent on B. B) 40 percent on A and 20 percent on B. C) 30 percent on A and 20 percent on B. D) 30 percent on A and 30 percent on B.
Which of the following topics is a macroeconomic subject?
A. increases in the overall price level of a nation B. a proposed merger between two companies C. the level of sales at a particular department store D. the pricing decision of a firm