Jerome, the florist, sold 500 bridesmaid's bouquets in June. He estimates his costs that month were ATC = $10, AVC = $6, and MC = $9 . If he sold each bouquet at the constant market price of $9, Jerome
a. made an economic profit of $500
b. made a loss of $500
c. made an economic profit of $1,500
d. made a loss of $1,500
e. should have shut down in June
B
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Holding money as a medium of exchange to make payments is
A) the capital demand for money. B) the transactions demand for money. C) the precautionary demand for money. D) the asset demand for money.
According to the Application, one factor which was responsible for roughly one-fifth of hybrid vehicles purchased in 2007 was a federal subsidy of up to $3,400 per hybrid vehicle
The increase in sales due to this subsidy is an example of which element of the economic way of thinking? A) responding to incentives B) using assumptions to simplify C) thinking at the margin D) isolating variables
The sum of the unemployment rate and the inflation rate is known as:
a. the macroeconomic index. b. the mortality rate. c. the market index. d. the misery index. e. a coincident indicator.
The production possibilities frontier is a graph that shows the various combinations of output that an economy
a. should produce. b. wants to produce. c. can produce. d. demands.