Economic profit can be calculated as
A) total revenue - explicit costs.
B) total revenue - implicit costs.
C) total revenue - explicit costs - implicit costs.
D) total revenue - fixed costs.
C
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A monopolist may choose a price lower than the profit maximizing price because?
a. its costs curves are not the most efficient in the market b. it wants to prevent the government from deciding to regulate the monopoly c. the market prefers a lower price d. it want to encourage potential competitors to enter the market
Advances in productivity increase supply because they might
A) increase the price expected in the future. B) decrease the cost of production. C) increase the number of firms producing the good. D) raise the prices of resources used to produce the good. E) decrease the number of goods available.
Which of the following is most likely to affect the supply of labor in any particular industry?
a. the size of the available working population b. the nonmonetary attractiveness of the job c. the amount of ability and training necessary to enter the job d. all of the above
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described, if the market price of hammers increased from $6 to $7:
A. total producer surplus would decrease. B. total producer surplus would increase. C. total producer surplus would remain unchanged. D. total producer surplus cannot be determined with the information given.