A firm that has negative economic profits has accounting profits that are
A) zero.
B) positive.
C) negative.
D) indeterminate without more information.
Answer: D
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Perfect price discrimination occurs when:
A) a firm charges wealthier buyers a lower price. B) a firm charges each buyer exactly their willingness to pay. C) a firm charges the same buyer different prices at different points of time. D) a firm charges different buyers according to the characteristic of their purchase.
The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The marginal cost per hat of producing 30 hats per hour (instead of 25 ) is
A) $240.00 per hat. B) $250.00 per hat. C) $8.33 per hat. D) $2.00 per hat.
Brady, a farmer, exchanges three bushels of apples for two pairs of shoes made by Jeff, a cobbler. We can say that Brady and Jeff are parts of a: a. barter economy
b. capitalistic economy. c. socialistic economy. d. mixed economy.
You participate in a taste test for a new protein supplement called "Kapow." You are given five consecutive one ounce vials of the supplement and after consuming each vial you are asked to note your reaction. You consume the first vial and your response
is: "Hmmm, quite good!" After the second, you say, "Not bad at all." After the third, you note, "It's alright." and after the fourth you wince, "No more, the after-taste is getting to me. I need water." What economic principle does this scenario illustrate? Define the principle. What will be an ideal response?