If the price of a product is $12, its average total cost is $2 and its average variable cost is $15 at the profit-maximizing output level,  in the short run the firm:

Compared to a competitive input market, a monopsonist will hire:

a. more and pay a higher input price. b. less but pay a higher input price. c. more but pay a lower input price. d. less and pay a lower input price.

Sebastian decides to open a tree farm. When deciding to open his own business, he turned down two separate job offers of $25,000 and $30,000 and withdrew $20,000 from his savings. Sebastian's savings account paid 3 percent interest. He also borrowed $20,000 from his brother, whom he pays 2 percent interest per year. He spent $15,000 to purchase supplies and earned $50,000 in revenue during his

first year. Which of the following statements is correct? a. Sebastian's economic profit is $4,000 . and his accounting profit is $34,600 . b. Sebastian's economic profit is $4,600, and his accounting profit is $35,000. c. Sebastian's economic profit is -$16,000 . and his accounting profit is $34,600. d. Sebastian's economic profit is -$16,000 . and his accounting profit is $14,600.