A firm's economic profits are given by
a. total revenue minus total accounting cost.
b. the owner's opportunity cost.
c. total revenue minus total economic cost.
d. total revenue minus the cost of capital.
c
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All of the following statements regarding rational ignorance are true except
a) combined with special interest groups, it yields inefficiency in the provision of public goods b) it allows special interest groups to exert political influence c) it leads to an efficient outcome d) none of the above
Refer to the budget line shown in the diagram above. If the consumer's money income is $20, the:
A) prices of C and D cannot be determined. B) price of C is $2 and the price of D is $4. C) consumer can obtain a combination of 5 units of both C and D. D) price of C is $4 and the price of D is $2.