In Exhibit 1, what is the consumer surplus at a quantity of one unit when the price is $4?
a. $8
b. $7
c. $4
d. $3
d. $3
You might also like to view...
How did the AFL feel about unskilled noncraft workers?
a. It was threatened by their low wages. b. It felt sympathy for them. c. It was unconcerned about them. d. It hoped to make them new members. e. It resented their high MRP.
Refer to the graph shown. Assuming that the industry operates under conditions of perfect competition:
A. new firms will soon enter the industry. B. it is currently in equilibrium. C. existing firms will leave the industry. D. firms in the industry are earning zero economic profit.
The future of private sector labor unions is
A. bright because of the numerous recent innovations in recreational technologies now available for overworked and highly-stressed union members. B. bleak because of the growing economic influence of Walmart upon its suppliers. C. bleak because of the sweep of Congress by Democrats in 2006. D. bright because of the booming Chinese export-driven economy.
Suppose Frank quits his $25,000 a year job and starts his own hauling company. He takes $10,000 out of his savings account at the bank, where he was earning 5 percent interest, to buy a truck. His other expenses, including the truck, are $20,000 . Frank's revenues are $48,000 . Frank ends up with
a. $3,000 in wage-related rent b. $2,500 in entrepreneurial profit c. a $7,000 loss d. $48,000 in entrepreneurial profit e. $3,000 in entrepreneurial profit