Suppose a soccer coach has been making $25,000 per year but gives up his coaching job in order to make lace doilies. If his revenue from the sale of these doilies is $50,000 and his materials cost $20,000 . then his economic profit is
a. $5,000
b. $25,000
c. $30,000
d. $50,000
e. $80,000
A
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If MSC = 20 + 0.75A, where MSC is in millions of dollars, and A is the percentage of mercury emissions abatement, then
a. the total social costs of abatement equal $184 million when A is 8 percent b. the TSC at an abatement level of 10 percent is $27.5 million c. a 40 percent abatement level is associated with MSC of $30 million and TSC of 20 million d. TSC cannot be determined at any abatement level
The most common form of business organization in the United States is the sole proprietorship
a. True b. False
As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this occurs, Bubba's Bubble Gum Company encounters
a. economies of scale. b. diseconomies of scale. c. increasing marginal product. d. diminishing marginal product.
In a simple majority vote on a public project,
A) the project will never be undertaken if the costs exceed the benefits. B) the project may be undertaken even though the total costs exceed the total benefits. C) the intensity of individual preferences is taken into account. D) the project will always be undertaken if the total benefits exceed the total costs.