A business owner makes 50 items by hand in six hours. She could have earned $10 an hour working for someone else. If each item sells for $5 and the explicit costs total $14, economic profit equals:
A. $74.
B. $0.
C. $236.
D. $176.
Answer: D
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A) 49,557.89 B) $48,049.02 C) $49,550.22 D) $48,076.92
The monopolist faces the market demand curve
a. True b. False Indicate whether the statement is true or false
There is an inverse relationship between the price level and aggregate expenditures
Indicate whether the statement is true or false
Under a negative income tax program, if a minimum income is set at $16,000 for a family of four and the tax rate is 25%, a family earning $8,000 would have an after tax income of
a. $16,000 b. $8,000 c. $22,000 d. $6,000 e. $12,000