Ashley recently began running her husband's lumber mill. Last month she took in $5,000 in sales revenue and paid $3,400 in out-of-pocket costs. Did the lumberyard make an economic profit last month?
a. Definitely not
b. Yes. After considering non-zero explicit and implicit costs, it is clear that her profit is exactly equal to $1,600.
c. Without knowing the magnitude of implicit costs, it is not possible to state whether the lumberyard earned an economic profit last month.
d. Yes, after factoring implicit costs, it is clear that her profit will exceed $1,600.
c
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a. a stationary source c. a nonpoint source b. a mobile source d. none of the above
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A) the value of the assets backing up the system. B) the public's confidence in the system. C) the difficulty of counterfeiting the currency. D) the value of the metal backing up the system.
Profit is the payment for
a. land and labor b. risk taking and innovation c. capital and labor d. risk taking and capital e. all of the factors of production
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A. the market quantity is too low from society's point of view. B. the market price is below the socially preferred price that reflects the external costs. C. the market price is above the socially preferred price that reflects the external costs. D. market forces will always correct the problem.