Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital. The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $360,000 per year. What is the accounting profit for the firm described above?

The "beauty premium" can be explained by the fact that

a. marginal productivity in all occupations has a physical dimension. b. in some occupations, physical attractiveness of workers may enhance the value of their marginal product. c. beauty acts as an implicit signal of innate intelligence. d. beautiful people are likely to reflect "good breeding."

A perfectly competitive firm has to charge the same price as every other firm in the market. Therefore, the firm

A) faces a perfectly inelastic demand curve. B) is not able to make a profit in the short run. C) is a price taker. D) faces a perfectly elastic supply curve.