A small business owner earns $60,000 in revenue annually. The explicit annual costs equal $40,000. The owner could work for someone else and earn $25,000 annually. The owner's accounting profit is ________ and owner's economic profit is ________

Compare and contrast the effect of perfect competition to the effect of perfect price discrimination on:

a. efficiency. b. consumer surplus. c. economic profit in the long run.

According to Friedman's permanent income hypothesis, which of the following statements about transitory income is true?

a. It reflects the unexpected gains of income are transitory income. b. It reflects the income of people who have temporary employment. c. People's consumption depends on transitory income. d. It reflects the income of retired people. e. Habitual losses (or gains) at gambling are transitory income.