Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant, Ziva helps people organize their houses. Due to the popularity of her home-organization services, Farmer Ziva has more clients requesting her services than she has time to help if she maintains her farming business. Farmer Ziva charges $25 an hour for her
home-organization services. One spring day, Ziva spends 10 hours in her fields planting $130 worth of seeds on her farm. She expects that the seeds she planted will yield $300 worth of lettuce. Ziva's accounting profit from farming equals
a. $-80.
b. $130.
c. $170.
d. $260.
c
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If the wheat harvest next summer in Canada will be much less than had been expected, there will tend to be
A) a decrease in the price of wheat futures and an increase in the current cash price of wheat in the US. B) a decrease in the price of wheat futures and in the current cash price of wheat in the US. C) an increase in the price of wheat futures and a decrease in the current cash price of wheat in the US. D) an increase in the price of wheat futures and in the current cash price of wheat in the US.
Efforts by a firm to obtain a monopoly
A) are called price discrimination. B) increase consumer surplus. C) are called rent seeking. D) are called price taking.