Profits
a. are what remains from the selling price after factors have been paid.
b. accrue to entrepreneurs.
c. are lower than most people think.
d. All of the above are correct.
d
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Explain how new technologies, which increase productivity, affect the average variable cost, average total cost, and marginal cost curves
What will be an ideal response?
Franco's Frozen Ice produces Italian flavored ice that is sold in the freezer section of grocery stores. Currently, Franco's does not have a fixed advertising budget and advertises in grocery stores' weekly advertising flyers and on the radio. A unit of advertising in the weekly flyers costs $1,500 and a unit of advertising on the radio costs $4,500. At their current advertising levels, the
marginal benefit of advertising in the flyer is $1,750 and the marginal benefit of advertising on the radio is $5,000. Which of the following is true? A) To maximize profits, Franco's should increase the amount of advertising in flyers and on the radio. B) To maximize profits, Franco's should increase the amount of advertising in flyers, but not change the amount of advertising on the radio. C) Franco's is currently maximizing its profits from advertising. D) To maximize profits, Franco's should decrease the amount of advertising in flyers and on the radio.
Over the last 100 years labor force participation by elderly males has fallen from over 2/3 to 1/5
Indicate whether the statement is true or false
According to utility theory, a consumer is in equilibrium when:
a. total income is spent. b. marginal utility per dollar spent for a good is maximized. c. total utility per unit of a good is maximized. d. total utility per dollar spent is equal for all goods. e. marginal utility per dollar spent is equal for all goods.