If a firm makes normal profit, the entrepreneur must earn a wage that
a. is at least as much as he can earn elsewhere
b. must be less than he can earn elsewhere
c. equals the economic profit generated by the firm
d. lowers the opportunity cost of finding alternative work
e. is enough for him to live on
A
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The above table has the demand for money schedule
a) If the Fed supplies $1.1 trillion dollars, what is the equilibrium interest rate? b) Discuss how equilibrium is restored if the interest rate is greater than the equilibrium rate found in part (a).
Who will bear the burden of a $0.50 tax placed on soda suppliers (consumer or seller) in a soda market where Qd = 225-10P and Qs = 50 + 15P?
A) Consumers pay $0.30 of the tax, bearing the burden. B) Consumers pay $0.25 of the tax, bearing the burden. C) Sellers pay $0.25 of the tax and bear the burden. D) Sellers pay all of the tax and bear the burden.