Suppose that a small business takes in monthly revenue of $100,000 . Labor, rental, energy, and other purchased input costs are $70,000 . The owner/entrepreneur could earn $5,000 per month in another job, and the owner/entrepreneur could get a return of $5,000 each month if she sold her business and invested the net proceeds in a financial asset, such as a treasury bond. Which of the following
correctly describes her monthly economic profit?
a. $100,000.
b. $90,000.
c. $70,000.
d. $30,000.
e. $20,000.
c
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If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) the market equilibrium price to increase B) the market equilibrium price to decrease C) earning economic profits indefinitely D) the market supply to decrease
If the MPC = 1, the spending multiplier is:
a. infinite. b. zero. c. 10. d. 100. e. 1.
State and define all the components of the GDP of an economy when it is measured by using the expenditure method
Output in an economy can be decreased by
A. using more machines. B. limiting the work week. C. adding more workers. D. all of the above