Suppose a professor gives up her teaching job to devote her time to writing textbooks. If salaries of professors rise,
a. her accounting profit will rise
b. her accounting profit will fall
c. her explicit costs will rise
d. her economic profit from textbooks will fall
e. her economic profit from textbooks will rise
D
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Define the term "import."
What will be an ideal response?
As a firm increases its output, its average total cost decreases. This is an outcome of:
A) the Law of Demand. B) economies of scale. C) diseconomies of scale. D) the Law of Diminishing Returns.
In the figure above, imposing a tax on the sellers of the product results in a division in which
A) all of the tax is paid by the buyers. B) all of the tax is paid by the sellers. C) the buyers and sellers pay the same amount. D) neither the buyers nor the sellers pay the tax.
When quantity supplied is greater than quantity demanded, there
A. is a shortage. B. is a surplus. C. may be either a shortage or a surplus. D. may be neither a shortage or a surplus.