The perfectly competitive widget industry is in long-run equilibrium. A profit-maximizing manufacturer receives total revenue of $55,000 . He uses his labor, $15,000 worth of wire, and $15,000 worth of steel to make the widgets. The manufacturer
a. is earning an economic profit of $25,000.
b. must have an opportunity cost of labor of less than $25,000.
c. must have an opportunity cost of labor of exactly $25,000.
d. must have an opportunity cost of labor of more than $25,000.
c
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If the economy were at full employment and is producing at point Y,
A. the unemployment rate would increase.
B. the unemployment rate would decrease.
C. the production possibilities frontier would have shifted inward.
D. the production possibilities frontier would have shifted outward.
How did people like Mark Zuckerberg of Facebook and the late Steve Jobs of Apple become so rich?
A) by obtaining large subsidies from powerful politicians B) mostly by stealing from those who were less fortunate C) by providing highly valued goods and services to consumers at attractive prices D) by acquiring more years of schooling than almost anyone else