Katherine gives piano lessons for $15 per hour. She also grows flowers, which she arranges and sells at the local farmer's market. One day she spends 5 hours planting $50 worth of seeds in her garden. Once the seeds have grown into flowers, she can sell them for $150 at the farmer's market. Katherine's accounting profits are
a. $100, and her economic profits are $25.
b. $100, and her economic profits are $75.
c. $25, and her economic profits are $100.
d. $75, and her economic profits are $125.
a
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The market for high-end cars is likely to be a(n) ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
To find the market demand curve for a product, we sum the individual demand curves a. vertically
b. diagonally. c. horizontally. d. perpendicularly.
Which of the following is an example of a fixed cost for a fishing company?
A. The cost of hiring a fishing crew. B. The fuel costs of running the boat. C. The monthly loan payment on the boat. D. The supply of nets, hooks, and fishing lines.
Exhibit 8-11 A firm's cost and marginal revenue curves
In Exhibit 8-11, when the price rises from $5 to $8, the profit-maximizing (or loss-minimizing) firm goes from making a:
A. loss to making a smaller loss. B. loss to making a larger loss. C. loss to making a profit. D. profit to making a loss.