Explain how both sales and long lines prior to store openings are characteristic of markets in disequilibrium
One function of sales is to reduce the price of products and bring markets with current excess supply into equilibrium. If the quantity of a product demanded exceeds the quantity supplied at the current market price, goods may be allocated to consumers on a first-come, first-served basis. Standing in line is one way to allocate goods, which also increases the opportunity cost of buying the goods.
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The above figure illustrates
A) a recessionary gap. B) a full-employment equilibrium. C) an inflationary gap. D) an equilibrium at the economy's physical limits.
Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, and the explicit costs of his business are $10,000. What is his accounting profit?
A) $10,000 B) $22,000 C) $32,000 D) $42,000