Assume that each day a firm uses 13 employee-hours and an office to produce 100 units of output. The price of each unit output is $5, the hourly wage rate is $10, and rent on the office is $200 per day. Each day the firm earns a ________ of ________.
A. loss; $200
B. profit; $370
C. profit; $170
D. loss; $170
Answer: C
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The quantity theory of money assumed
A) that an increase in prices causes a proportionate increases in real GDP. B) a fall in the velocity of money causes a proportionate increase in the money supply. C) a rise in money supply causes a proportionate fall in velocity. D) the fraction of income people desire to hold in the form of money is a constant.
There are multiple models of pricing behavior in oligopolistic markets because
a. it is difficult to predict how rival firms will react to any pricing decision b. the demand curve slopes upward for these firms c. firms could earn profit in the long run unlike other markets d. price has a direct impact on profit for a firm in oligopoly e. the products are not identical in terms of quality, image, location
Which type of unemployment contributes to the natural rate of unemployment?
A. Real-wage unemployment B. Cyclical unemployment C. Unemployment of government workers. D. All of these contribute to the natural rate.
As a component of aggregate demand, investment refers to the
A) purchase of raw land for later resale B) purchase of stocks and bonds C) purchase of new equipment and additional inventories D) difference between people's income and spending E) dividends paid out to shareholders