Refer to the above graph. At output level H, the area of economic profit is:
A. ACG.
B. 0AEH.
C. BCGF.
D. BAEF.
Answer: D
You might also like to view...
In a market system, prices are determined by
a. corporate executives b. government bureaucrats c. supply and demand d. total market demand e. production costs
What will be the outcome of a government law requiring employers with more than 100 employees to incur additional employee-related costs?
a. raise the cyclical rate of unemployment b. lower the cyclical rate of unemployment c. raise the natural rate of unemployment d. lower the natural rate of unemployment
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.
If the price of a good rises by 10% and the quantity purchased falls by 5%, then demand for the good is ________ and total spending on the good will ________
A) elastic; increase B) inelastic; increase C) elastic; decrease D) me and so inelastic; decrease