Flora's Flowers operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $10, AVC = $5, and the price per unit is $7.50 . In this situation,
a. Flora earns positive profits in the short run
b. Flora will shut down in the short run
c. Flora's supply curve will shift to the left
d. Flora's supply curve will shift to the right
e. Flora earns negative profits in the short run but will remain open
E
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Stuck in Cleveland You purchased a roundtrip ticket to a friend's wedding in Cleveland on Saturday for $400, but on Sunday you discover your return flight is canceled due to weather. The airline will not be able to get you back home until late Monday but Greyhound has an overnight bus route that arrives at 6:00am Monday for $60 . What is the opportunity cost of missing work on Monday?
Which of the following could be the cross-price elasticity of demand for two goods that are complements?
a. -1.3 b. 0 c. 0.2 d. 1.4