If a fishing boat owner brings 10,000 fish to market and the market price is $7 per fish, she will have $70,000 in total revenue. If the average variable cost of 10,000 fish is $4 and the fixed cost of the boat is $20,000 . what is her profit?
a. $1
b. $3
c. $1,000
d. $3,000
e. $10,000
E
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Starting from long-run equilibrium, the long-run impact of a war that raises government purchases, compared to the original equilibrium, is:
A. higher inflation and higher output. B. lower inflation and the same output. C. lower inflation and lower output. D. higher inflation and the same output.
In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is inefficient?
A) 4 million pounds of bananas and 4 million hats B) 2 million pounds of bananas and 5 million hats C) 0 pounds of bananas and 6 million hats D) 1 million pounds of bananas and 3 million hats
Refer to Table 4-4. If a minimum wage of $10.50 an hour is mandated, what is the quantity of labor demanded?
A) 400,000 B) 370,000 C) 340,000 D) 60,000
Suppose there is an increase in the U.S. interest rate relative to European interest rates. How does this affect U.S. investors?
a. U.S. investors decrease their demand for euros relative to their demand for dollars, shifting D1 to D2.
b. U.S. investors shift their investments to Europe, shifting the demand curve from D1 to D2.
c. U.S. investors shift their investments to Europe, shifting the demand curve from D2 to D1.
d. U.S. investors increase their demand for euros relative to their demand for dollars, shifting D2 to D1.