Assume that each day a firm uses 13 employee-hours per day and an office to produce 100 units of output. The price of each unit output is $5, the hourly wage rate is $10, and rent on the office is $200 per day. Each day the firm earns a ________ of ________.
A. loss; $200
B. loss; $170
C. profit; $170
D. profit; $370
Answer: C
You might also like to view...
If the short run elasticity of supply for a product is 0.8, in the long run elasticity, supply: a. Is inelastic
b. Is unit elastic. c. Is inelastic. d. Any of the above could be true of the product's long run elasticity of supply.
A local manufacturing plant that emitted sulfur dioxide was forced to stop production because it did not comply with local clean air standards. This decision provides an example of
a. a direct regulation of an externality. b. corrective taxes. c. a Coase theorem solution to an externality. d. the misuse of a subsidy.
The exchange rate is the price measured in one country's currency of buying one unit of another country's currency
Indicate whether the statement is true or false
It is necessary for government officials to analyze cost data to determine what their country should specialize in producing
Indicate whether the statement is true or false