Marge Sampson produces and sells 400 jars of homemade jelly each month for 3 each. Each month, she pays 200 for jars, 150 for ingredients, and uses her own time, with an opportunity cost of 500 . Her economic profits each month are:
a. 350.
b. 500.
c. 650.
d. 700.
Question 2
A bond with a par value of 1,000 is traded at 1,500 . The coupon rate offered on the bond is 10 percent.The bond matures after a period of 5 years . The coupon paid to the bond holder after the end of the first year is:
a. 150.
b. 100.
c. 200.
d. 50.
e. 250
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