In a simple economy (without government or foreign trade) where output can be purchased only by consumers or by firms, saving must equal

If a non-discriminating monopolist decides to lower its price to sell one more unit of its product, then

a. total revenue rises by an amount equal to the price b. some revenue is lost to the extent that units previously sold at a higher price now sell for a lower price; however, the additional unit sold brings in new revenue c. marginal revenue increases when total revenue increases d. the net effect on total revenue is typically zero since the price must fall e. the net effect on total revenue is typically negative since the price must fall

Given the information that follows, how much are (a) accounting profits? (b) economic profits? Sales: $2 million; explicit costs: $1 million; wages you and your family members could have earned doing the same work for another firm: $150,000; return you could have earned by investing your money elsewhere: $100,000

What will be an ideal response?