Donnie's Donuts incurs $450,000 per year in explicit costs and $200,000 in implicit costs. The bakery earns $800,000 in revenues and has $2 million in net worth. Based on this information, what is the economic profit for Donnie's Donuts?
A) $150,000 B) $350,000 C) $600,000 D) $1.2 million
A
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All of the following are evidence of specialization except
a. a solo carpenter who builds a whole bedroom set b. restaurants that range from subs to sushi c. the credits at the end of a movie d. professional mourners in Taiwan e. online sellers
Mike can wash a car in 5 minutes and wax a car in 15 minutes. Tony can wash a car in 10 minutes and wax a car in 20 minutes. Which of the following is true?
a. Mike can wash a car faster and has comparative advantage in washing cars. b. Mike can wax a car faster and has comparative advantage in waxing cars. c. Tony can wash a car faster and has comparative advantage in washing cars. d. Tony can wax a car faster and has comparative advantage in waxing cars.
Any point inside a production possibilities curve indicates that the economy is using all its available resources and technology
Indicate whether the statement is true or false
A deadweight loss is never
A. found when people are still living. B. found when marginal benefits equal marginal costs. C. found in open economies. D. allowed in the U.S.