Suppose that you have returned from your fishing expedition with 20,000 fish. The market price is $3 per fish. Your average fixed cost was $1 and your total variable cost was $5,000 . If the price jumps to $3.50 before you sell your first fish, how much extra profit, if any, do you earn?
a. $10,000.
b. $25,000.
c. $30,000.
d. $45,000.
e. $70,000.
a
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The basic tools of supply and demand apply to
a. both markets for goods and services and markets for labor services. b. markets for goods and services but not to markets for labor services. c. markets for goods and services but not to markets for factors of production. d. all markets except those in which demand is derived demand.
The sacrifices made by societies in order to engage in military spending represent:
A. the nominal costs of military spending. B. the real costs of military spending. C. the opportunity costs of military spending. D. the excessive costs of military spending.
The United States payroll tax is progressive.
Answer the following statement true (T) or false (F)
From 1800 to 1940, the price level in the United States
A. trended neither upward nor downward. B. declined slowly. C. fluctuated wildly. D. increased slowly.