Tommy's Teddy Bears incurs $300,000 per year in explicit costs and $50,000 in implicit costs. The shop earns $600,000 in revenues and has $1.1 million in net worth. Based on this information, what is economic profit for Tommy's Teddy Bears?
A) $250,000 B) $300,000 C) $500,000 D) $1.35 million
A
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Government corruption reduces economic growth around the globe, most commonly through widespread cash payments or gifts to receive a government service
Indicate whether the statement is true or false
Consider the above table. If the government imposes a price ceiling on garbanzo beans of $8, what would be the likely result?
A) a surplus of 2,000 garbanzo beans on the market B) a shortage of 2,000 garbanzo beans on the market C) Market equilibrium will be reached. D) The quantity demanded of garbanzo beans would fall to zero.
The concentration and Herfindahl indices computed by the U.S. Bureau of Census must be interpreted with caution because:
A. Both they overstate the actual level of concentration in markets served by foreign firms and they understate the degree of concentration in local markets, such the gasoline market are correct. B. they understate the degree of concentration in local markets, such the gasoline market. C. they overstate the actual level of concentration in markets served by foreign firms. D. None of the statements are correct.
Legal constraints will always reduce the size of the economic pie
Indicate whether the statement is true or false