Jane was a partner at a law firm earning $223,000 per year. She left the firm to open her own law practice. In the first year of business she generated revenues of $347,000 and incurred explicit costs of $163,000 . Jane's economic profit from her first year in her own practice is
a. -$39,000.
b. $124,000.
c. $163,000.
d. $184,000.
a
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Markets exist to facilitate exchange between people
Indicate whether the statement is true or false
A consequence of hyperinflation is that people
A) increase the quantity of money demanded. B) receive higher real wage hikes, which increases their purchasing power for goods and services. C) who make fixed-payment loans to others receive higher payments as inflation increases. D) spend time trying to keep their money holdings near zero. E) want to lend funds because interest rates are so high.
The focal point of collective bargaining negotiations is generally ________________.
Fill in the blank(s) with the appropriate word(s).
In a market economy, what provides potential investors with reliable information about the financial performance of a firm?
A. contracts B. insurance C. patents D. accounting rules