The perfectly competitive widget industry is in long-run equilibrium. A profit-maximizing manufacturer receives total revenue of $55,000. He uses his labor, $15,000 worth of wire, and $15,000 worth of steel to make the widgets. The manufacturer
A. is earning an economic profit of $25,000.
B. must have an opportunity cost of labor of less than $25,000.
C. must have an opportunity cost of labor of exactly $25,000.
D. must have an opportunity cost of labor of more than $25,000.
Answer: C
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Population growth rates tend to be ______.
a. dependent on economic growth b. unaffected by a country’s wealth c. higher in poorer countries d. higher in richer countries
Paul Bergen and Virginia Clancy each own a 100-acre soybean farm in Soyburg, Illinois. Together they grow 1/1000th of 1 percent of the nation's soybeans. When they merge, it will:
A. attract the attention of the Federal Trade Commission. B. be a horizontal merger. C. reduce competition in the soy market. D. increase the market power of Paul and Virginia.
What gives money value under a fiat system?
A. Fiat money is backed by gold. B. The supply of fiat money is controlled by the government. C. Fiat money is also a commodity. D. Fiat money is the same as Treasury bonds.
Marginal utility can be
A) negative. B) zero. C) positive. D) positive, negative, or zero.