How does a firm measure its profit?
What will be an ideal response?
Profit is measured as the difference between total revenue and total cost.
Economics
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Given the aggregate demand curve, a beneficial supply shock will:
a. increase potential output and the price level b. decrease potential output and the price level. c. increase potential output and decrease the price level. d. decrease potential output and increase the price level. e. cause no change in potential output or the price level.
Economics
In an attempt to reduce poaching of elephant ivory tusks, officials in Kenya burned illegally gathered ivory. Using your understanding of shifts in supply and demand, will this turn out to be a helpful or hurtful move on the Kenyan government's part?
Economics