Amber has opened a coffee shop for many years on a piece of land that she has also owned. She has also made accounting profits from the coffee shop
This year, rents in the area rose considerably, and Amber responded by deciding to sell the land and the coffee shop to an apartment builder. How can you explain Amber's decision to sell her business?
Even though Amber has been making accounting profits, her decision to sell her business was based on the opportunity cost of the land, which obviously had risen to the point that she made a negative economic profit on her coffee shop business.
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If the U.S. economy enters a recession, the
A) labor force tends to increase. B) economy experiences full employment. C) unemployment rate tends to increase. D) entire population will be partially unemployed.
Which of the following goods is best described as being sold in a monopolistically competitive market?
A) automobiles B) wheat C) fast food D) postage stamps