Land of Many Lakes (LML) sells butter to a broker in Albert Lea, Minnesota. Because the market for butter is generally considered to be competitive, LML does not
a. choose the quantity of butter to produce.
b. set marginal revenue equal to marginal cost to maximize profit.
c. have any fixed costs of production.
d. choose the price at which it sells its butter.
d
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An indirect flow of funds occurs when
A) funds flow from saver-lenders to borrower-spenders through financial intermediaries. B) funds flow from saver-lenders to borrower-spenders through financial markets. C) funds flow to saver-lenders from borrower-spenders through financial intermediaries. D) funds flow to saver-lenders from borrower-spenders through financial markets.
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.