Suppose a lawyer leaves his $50,000-a-year job and starts his own firm breeding pit bulls. In the first year, his accounting profit is $70,000 . The lawyer finances his new business with $100,000 from his savings account, which had earned 10 percent interest. His economic profit is

Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply curve when the person wins a lottery prize of $100 per day

What will be an ideal response?

A tax on a good causes the size of the market to increase

a. True b. False Indicate whether the statement is true or false