Jerome, the florist, sold 500 bridesmaid's bouquets in June. He estimates his costs that month were ATC = $10, AVC = $6, and MC = $9 . If he sold each bouquet at the constant market price of $9, Jerome
a. made an economic profit of $500
b. made a loss of $500
c. made an economic profit of $1,500
d. made a loss of $1,500
e. should have shut down in June
B
You might also like to view...
The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The opportunity cost of moving from ________ is greater for ________
A) point E to point D; Bear B) point A to point B; Anaconda C) point B to point A; Bear D) point D to point E; Bear E) any point to any other point; Bear
The bowed-outward shape of a PPF
A) is due to capital accumulation. B) reflects the unequal application of technology in production. C) illustrates the fact that no opportunity cost is incurred for increasing the production of the good measured on the horizontal axis but it is incurred to increase production of the good measured along the vertical axis. D) is due to the existence of increasing opportunity cost.