Suppose Marv, the owner-manager of Marv's Hot Dogs, earned $82,000 in revenue last year. Marv's explicit costs of operation totaled $36,000. Marv has a Bachelor of Science degree in mechanical engineering and could be earning $40,000 annually as mechanical engineer.
A. Marv's economic profit is $36,000.
B. Marv's economic profit is $6,000.
C. Marv's implicit cost of using owner-supplied resources is $36,000.
D. Marv's implicit cost of using owner-supplied resources is $30,000.
Answer: B
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A product's price elasticity of demand is likely to be greater
A) if it only has a few substitutes. B) if consumers spend a small proportion of income on the product. C) the less time consumers have to adjust to price changes. D) if the product is a luxury good rather than a necessity. E) Both answers C and D are correct.
In 2010, the proportion of all poverty-level families headed by a female was
a. approximately one-fourth. b. approximately one-third. c. approximately half. d. more than three-fourths.
Discouraged workers are included in the
A. labor force category. B. unemployed category. C. not in the labor force category. D. employed category.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.