Total profit = Total revenue ? Total cost (including opportunity cost). Total profit defined in this way is called
a. accounting profit.
b. economic profit.
c. absolute profit.
d. relative profit.
b
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Justin Field just stopped at the Exxon station on the way to campus and bought four Butterfinger candy bars, two 20-ounce bottles of grape-watermelon Snapple, and 10 gallons of gas. His marginal-utility-to-price ratios are 3.21 for the Butterfingers,
4.8 for the Snapples, and 5.7 for the gas. Explain why this set of purchases did not maximize Ryan's utility and how could he have increased his utility.
Which of the following are necessary characteristics of a monopoly? (i) The firm is the sole seller of its product. (ii) The firm's product does not have close substitutes. (iii) The firm generates a large economic profit. (iv) The firm is located in a small geographic market
a. (i) and (ii) only b. (i) and (iii) only c. (i), (ii), and (iii) only d. (i), (ii), (iii), and (iv)
At the midpoint of a straight-line demand curve, the price elasticity of demand is:
A. less than one. B. zero. C. greater than one. D. equal to one.
Which of the following examples would be least likely to happen in a rent-controlled apartment?
a. The repair of a tile floor would be delayed for months. b. The tenants would be reluctant to move. c. A new toilet would be installed. d. The walls would require repainting.