How much are the firm's total profits in the graph above?
Profit = (Price - ATC) × Output
= ($32 - 27.40) × 36
= $4.60 × 36
= $165.60
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Gertrude Stork's Chocolate Shoppe normally employs 4 workers. When the Chocolate Shoppe hired a 5th worker the Shoppe's total output decreased. Therefore
A) the total output of Gertrude Stork's Chocolate Shoppe is negative. B) the average product of the 5th worker is negative. C) the 5th worker should be hired only if he is willing to accept a wage lower than the wage paid to the other 4 workers. D) the marginal product of the 5th worker is negative.
School Board Voters' Ordered PreferencesDavidErnieFionaNew gymNew libraryNew computer labNew libraryNew computer labNew gymNew computer labNew gymNew libraryIf a pair-wise majority vote was held to determine which school project gets funded and the voters' preferences are shown in the table, if Ernie sets the agenda which option would he see was voted on first?
A. Computer lab and gym B. Library and lab C. Gym and library D. It doesn't matter which options are considered first.
The substitution effect and the output effect
A. always work in the same direction. B. sometimes work in the same direction. C. always work in the opposite direction. D. sometimes work in the opposite direction.
From the "economic perspective," people make purposeful decisions based on hypotheses.
Answer the following statement true (T) or false (F)