We would expect that a rise in labor supply will have a proportionately larger effect on the market wage rate when

Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were:

A. $100,000 and its economic profits were zero. B. $200,000 and its economic profits were zero. C. $100,000 and its economic profits were $100,000. D. zero and its economic loss was $200,000.

Models that are similar to RBC models but allow for shocks other than productivity shocks are known as

A. Friedman models. B. DSGE models. C. Solow models. D. Keynesian models.