Accounting profit is equal to?
A. Total revenue minus the explicit cost of producing goods and services.
B. Total revenue minus the opportunity cost of producing goods and service.
C. Average revenue minus the average cost of products the last unit of a good or service.
D. Marginal revenue minus marginal cost.
E. Total revenue minus depreciation.
A. Total revenue minus the explicit cost of producing goods and services.
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Suppose you are very picky about your outdoor BBQ experiences --- and you need exactly 1 cup of lighter fluid for each bag of charcoal you use. If you have either leftover charcoal or leftover lighter fluid, you simply discard it. a. With cups of lighter fluid on the horizontal and bags of charcoal on the vertical axis, illustrate some of your indifference curves. b. Suppose that your favorite charcoal has just gotten better because the producer has infused the charcoal with half a cup of lighter fluid per bag. How does your answer to (a) change? c. How could you change the units in which lighter fluid is measured on the horizontal axis to get your graph from (b) to look the same as you original graph in (a)?
What will be an ideal response?
Real income is the purchasing power of nominal (money) income
a. True b. False Indicate whether the statement is true or false
Medical research that results in a cure for a serious disease produces positive externalities. What is the impact of this positive externality on economic efficiency?
A) At the market equilibrium, less than the economically efficient quantity of medical research is produced. B) A deadweight loss occurs because at the market equilibrium the marginal social cost of medical research is greater than the marginal social benefit. C) At the market equilibrium, more than the economically efficient quantity of medical research is produced. D) A deadweight loss occurs because at the market equilibrium the marginal social cost equals the marginal social benefit.
An increase in the price of pork will lead to
A) a movement up along the demand curve. B) a movement down along the demand curve. C) a rightward shift of the demand curve. D) a leftward shift of the demand curve.