When a firm is earning economic profit, this indicates the firm is
a. increasing the value of the resources that it is using.
b. reducing the value of the resources that it is using.
c. supplying the market with a low quality product.
d. creating less value for consumers than another firm that is currently earning losses.
A
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From the economist's point of view, dividends paid to stockholders are part of a corporation's costs
A) because taxes are paid on a corporation's profits prior to the payment of dividends. B) because they must be included in stockholders' incomes for purposes of personal income taxation. C) insofar as they are contractual obligations. D) insofar as they represent what funds invested in the corporation could have earned elsewhere.
What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?
a. Bundle the goods at $4,500 . Profits=$9,000 b. Bundle the goods at $6,000 . Profits=$12,000 c. Bundle the goods at $5,000 . Profits=$10,000 d. Bundle the goods at $9,500 . Profits=$19,000
Discrimination exists when a man and a woman with the same levels of education earn different incomes.
Answer the following statement true (T) or false (F)
If countries do not engage in international trade:
A) they give up the ability to specialize in production. B) worldwide levels of production are lower. C) the world will be operating inside its production possibilities curve. D) all of the above are true.