Suppose that during a given time period the implicit cost for a business was $1,500 and that the explicit cost was $6,000. Also suppose that the firm sold 1,000 units of its products at $7 per item. We can conclude that the firm's
A) accounting profit was $1,000, and its economic profit was -$500.
B) accounting and economic profits were both $1000.
C) accounting profit was -$500, and economic profit was $1,000.
D) accounting profit was $1000, and economic profit was -$1,500.
A
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Republicans often argue in favor of what to push the economy toward economic recovery, as they did during the recession that began in 2008?
A. Tax cuts B. Increase government spending C. Decrease government spending D. Encourage the public to save more
Real income can be determined by:
A. dividing the price level by nominal income. B. deflating nominal income for inflation. C. inflating nominal income for inflation. D. dividing the annual rate of inflation by the number "70."
Aggregate supply grows over time because of growing consumer and government spending.
Answer the following statement true (T) or false (F)
The marginal revenue curve of a monopolistically competitive firm will always lie:
A. below the firm's demand curve. B. parallel to the firm's demand curve. C. parallel to the firm's quantity axis. D. above the firm's demand curve.