In the above table, the efficient level of output can be achieved through a per unit subsidy of
A) zero.
B) $20.
C) $60.
D) $120.
B
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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
What are the costs and benefits of foreign trade?
What will be an ideal response?
An individual or country that has a comparative advantage in the production of one good:
A. must have an absolute advantage in the good's production. B. must not have an absolute advantage in the good's production. C. may or may not have an absolute advantage in the good's production. D. must not have an absolute advantage in the production of the other good.
If the demand for land shifts upward, rents will be
a. earned by some land that was formerly unprofitable. b. lost to many landowners. c. diminished for society as a whole. d. taxed away to help pay the costs of government.