Author Question: Lucinda starts a business consulting company. She makes all the business decisions and bears the ... (Read 257 times)

armygirl · **on:** Jun 29, 2018

Lucinda starts a business consulting company. She makes all the business decisions and bears the risk of running the business. The typical payment for Lucinda's work is ________.

A) all the revenue greater than her opportunity cost
B) all the revenue greater than the capital investment
C) a normal profit
D) an economic profit

Question 2

Suppose that the demand for corn is price inelastic. If a technological advance makes corn farms more productive, the equilibrium price of corn will ________ and the farmers' total revenue will ________.

A) rise; increase
B) rise; decrease
C) fall; increase
D) fall; decrease