In the coordination failure model, a rightward shift in the labor supply curve
A) increases the real wage and increases employment.
B) increases the real wage and decreases employment.
C) decreases the real wage and increases employment.
D) decreases the real wage and decreases employment.
D
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Suppose Angelo Sessa, owner of Sezz Medi Brick Oven Pizza in NYC, earns $350,000 in revenue per year. He spends $800 a month on ash wood for his stove, $2000 a month on rent, and $1500 a month on ingredients
He used to be a lawyer and earned $240,000 a year before he opened up Sezz Medi. Normal profit for a pizza business is $30,000. What is Angelo's economic profit? A) $28,400 B) $350,000 C) $58,400 D) $268,400
While taxing inelastic goods minimizes social costs from taxation, it frequently conflicts with traditional notions of fairness
a. True b. False