Mike purchased a 1968 Chevy Corvette in 2009 for $30,000 and a year later he sold it for $36,000. Due to these transactions

A. Mike earned a dividend of $36,000.
B. Mike earned a capital gain of $6,000.
C. Mike earned a capital loss of $6,000.
D. Mike earned a dividend of $600.


Answer: B

Economics

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Assume a perfectly competitive firm is producing 500 units of output, P = $7, ATC of the 500th unit is $6, marginal cost of the 500th unit = $7, and AVC of the 500th unit = $5. Based on this information, the firm is:

A) earning an economic profit of $500. B) earning an economic profit of $1,000. C) incurring a loss of $500. D) incurring a loss of $1,000.

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Indicate whether the statement is true or false

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When competing power blocs exist within an oligopolistic industry,

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Economics