Suppose that you open your own business and earn an accounting profit of $30,000 per year. When you started your business, you left a job that paid you a $25,000 salary annually
Also, suppose that you invested $70,000 of your own funds to start up your business. If the normal rate of return on capital is 5 percent, your economic profit is A) $5,000.
B) -$1,500.
C) $1,500.
D) -$5,000.
C
Economics
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If the marginal product of labor is decreasing, then marginal cost of production must be rising
Indicate whether the statement is true or false
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Commercial banks are required by law to hold reserves. These reserves are specified as percentages of a bank's
A. total assets. B. total liabilities. C. checkable deposit liabilities. D. holdings of government securities.
Economics