Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000. What is her economic profit?
A) $12,000 B) $56,000 C) $86,000 D) $98,000
B
You might also like to view...
Information asymmetry is not a problem when:
A. the wants of both parties are aligned with one another. B. the wants of both parties are opposed to one another. C. the constraints of both parties are identical. D. both parties lack the same information.
With positive externalities, market equilibrium occurs at a quantity that is greater than the socially optimal output
a. True b. False Indicate whether the statement is true or false
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$8,000$9,000910,00012,000815,00018,000720,00027,000628,00037,000
Table 9.7 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If Firm B would like to purchase one permit to be able to discharge nine tons of sulfur dioxide, what is Firm B's willingness to pay?
A. $2,000 B. $5,000 C. $6,000 D. $9,000
The price elasticity of supply is 0.6. This means that
A. a 10 percent increase in quantity will occur when price increases by 0.6 percent. B. a $10 increase in price would increase quantity supplied by 60. C. a 10 percent increase in price would increase quantity supplied by 6 percent. D. a 10 percent increase in quantity will occur when price increases by 60 percent.