Author Question: Manisha could work for another firm making 10,000 per month, but she decides to open her own gourmet ... (Read 77 times)

jhjkgdfhk · **on:** Jul 1, 2018

Manisha could work for another firm making 10,000 per month, but she decides to open her own gourmet cheese store and pay herself 2,000 per month.

In her first month of operations, she spends 6,000 on cheese, 1,000 on other items, and 2,500 on rent. She had a great opening month, and brought in revenues of 14,500. What are Manisha's economic profits? A) 3,000
B) 4,000
C) -5,000
D) -6,000

Question 2

If a firm has established monitoring devices that have a 50 chance of detecting shirking, and an employee gains 5,000 from shirking, the employer can deter shirking by having employees post a bond equal to

A) 2,500.
B) 5,000.
C) 10,000.
D) 50,000.