Author Question: If Adam's Rib Joint took in 35,000 in revenue last week and had out-of-pocket expenses of 31,500: ... (Read 36 times)

Starlight · **on:** Jun 30, 2018

If Adam's Rib Joint took in 35,000 in revenue last week and had out-of-pocket expenses of 31,500:
a. it is clear that Adam made an economic profit of 3,500.
b. Adam really didn't make any economic profit since he needs to put the difference between revenue and out-of-pocket expenses back into the firm.
c. Adam clearly did not earn an economic profit.
d. it is not clear whether Adam earned any economic profit last week because it depends on the magnitude of the implicit costs.

Question 2

An individual's decision to supply her labor or to spend her time in leisure activity is known as the labor-leisure tradeoff.
a. True
b. False
Indicate whether the statement is true or false