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 total economic costs per glass?
a. $0.18
b. $0.10
c. $0.08
d. $0.02
a
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The marginal revenue curve of a monopolistically competitive firm is
A) downward sloping and above the demand curve. B) downward sloping and below the demand curve. C) identical to the demand curve as there are many small firms in the market. D) perfectly elastic.
The total labor force equals: a. the number of officially employed persons
b. the number of officially unemployed persons. c. the number of officially employed plus unemployed persons. d. the number of persons aged sixteen and over in the population.
A contestable market is one where:
A. there is a threat of entry. B. there are no firms that threaten to enter the market. C. firms already in the market cannot leave the market. D. only one firm at a time can serve the market.
Demand-pull inflation occurs
A. when the aggregate demand curve shifts to the right, while aggregate supply remains stable. B. when the aggregate demand curve shifts to the left, while aggregate supply remains stable. C. when the aggregate supply curve shifts to the right, while aggregate demand remains stable. D. when the aggregate supply curve shifts to the left, while aggregate demand remains stable.