Using the data in the graph above, calculate the firm's total profit.
Total profit = (price - ATC) × output
= ($53.80 - $42.30) × 395
= $11.50 × 395
= $4,542.50
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If Abigail can produce 4 portable power banks or 3 smartphones in a day, while Jacob can produce 1 portable power bank or 2 smart phones, then it is correct to state that
A) Abigail has a comparative advantage in producing smartphones. B) Abigail has an absolute advantage in producing portable power banks but not smartphones. C) Jacob has a comparative advantage in smartphones. D) Jacob has an absolute advantage in smartphones.
If the quantity of Big Macs demanded falls from 2.0 million to 1.6 million as the price of Whoppers falls from $1.40 to $.80, the cross-price elasticity of demand for Big Macs is:
A. ?2.5. B. 0.4. C. ?0.4. D. 2.5
Even though points inside a production possibilities curve are attainable, why are they not preferred?
What will be an ideal response?
In calculating the benefit-cost ratio, social benefits and costs are discounted at the
a. internal rate of return b. federal funds rate c. Treasury Bill rate d. long-term government bond rate e. none of the above