56F Use the following graph showing a consumer’s budget line and some indifference curves to answer the following questions. The consumer’s income is…
September 3, 2020
Allocation I: x 1 = 50, y 1 = 60, x 2 = 75, y 2 = 60 20. What is the value of MRS 1 ? 21. What is the value of MRS 2 ? 22. Is I pareto efficient (EF)…
September 3, 2020

1. Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were: A. $100,000 and its economic profits were zero. B. $200,000 and its economic profits were zero. C. $100,000 and its economic profits were $100,000. D. zero and its economic loss was $200,000.

2. Which of the following is a short-run adjustment? A. A local bakery hires two additional bakers. B. Six new firms enter the plastics industry. C. The number of farms in the United States declines by 5 percent. D. BMW constructs a new assembly plant in South Carolina.

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