Refer to Figure 7-1. Marginal social benefit is represented by which curve?

Refer to Scenario 5.9. Without additional information, Torrid Texts would

A) contract with one paper producer in order to guarantee it avoids the worst outcome, $1 million. B) contract with two paper producers because $60 million is greater than $30 million. C) contract with two paper producers because $61 million is greater than $33 million. D) contract with two paper producers because $45.25 million is greater than $23.25 million. E) not be able to come to any decision on how many producers to contract with.

James used $250,000 from his savings account that paid an annual interest of 15% to purchase a hardware store. After one year, James sold the business for $320,000 . What is his economic profit?

a. $320,000 b. $70,000 c. $282,500 d. $32,500