Jerome, the florist, sold 500 bridesmaid's bouquets in June. He ...

[penza]

Jerome, the florist, sold 500 bridesmaid's bouquets in June. He estimates his costs that month were ATC = 10, AVC = 6, and MC = 9 . If he sold each bouquet at the constant market price of 9, Jerome:
 a. made an economic profit of 500.
  b. made a loss of 500.
  c. made an economic profit of 1,500.
  d. made a loss of 1,500.
  e. should have shut down in June.

Question 2

As the economy recovers from a recession, we should expect that demand for:
 a. inferior goods will fall and demand for non-inferior goods will rise.
  b. all goods will rise.
  c. inferior goods will rise and demand for non-inferior goods will fall.
  d. all goods will fall.
  e. complements will fall.

[lindahyatt42]

Answer to Question 1

b

Answer to Question 2

a

[penza]

Excellent

[ryansturges]

TYSM