If, as an entrepreneur, I am earning accounting profits of $60,000 per year and the opportunity cost of my time is $50,000
A. I should close my business.
B. I am earning economic losses of $10,000.
C. I am earning economic profits of $110,000.
D. I am earning economic profits of $10,000.
Answer: D
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If an industry has a Herfindahl index of 10,000, then
A. the industry is a single firm. B. it is perfectly competitive. C. it is considered a duopoly. D. it is considered an oligopoly.
Featherbedding refers to
A) training programs initiated by the unions to make the less-skilled workers more productive. B) attempts by management to reduce workers' interest in a union. C) the practice that forces employers to use more labor than they would otherwise. D) the amount of the union premium.
An increase in the price of good B caused an increase in the demand for good C. This indicates that goods B and C are
A) complements. B) substitutes. C) neither substitutes nor complements. D) normal goods.
According to the law of demand
A. people buy more of a good when the price falls. B. people buy more of a good when the price rises. C. people buy more of a good when their income rises. D. people buy more of a good when the relative price rises.