Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each. What are Wanda's implicit costs per glass?
a. $0.18
b. $0.10
c. $0.08
d. $0.02
b
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A share of stock is a
A) certificate of ownership and claim to the profits made by a firm. B) collection of funds that travels the world looking for the highest return. C) form of investment in physical capital. D) set of demanders and suppliers for the savings of households. E) promise to pay specified sums of money on specified dates.
Which of the following situations is NOT possible?
A) SAC and LAC are both increasing for some output levels. B) SAC is increasing but LAC is decreasing for some output levels. C) SAC is decreasing but LAC is increasing for some output levels. D) SAC and LAC are both decreasing for some output levels. E) All of the above are possible.
If the production of a good generates a detrimental externality, then at that level of production of the good under perfect competition,
a. MU = MSC. b. P < MPC. c. MPC < MSC. d. MPC > MSC.
If we are running a federal budget deficit, the national debt
A. may be rising. B. is definitely rising. C. is constant. D. may be falling.