Author Question: Ashley recently began running her husband's lumber mill. Last month she took in 5,000 in sales ... (Read 92 times)

saraeharris · **on:** Jun 30, 2018

Ashley recently began running her husband's lumber mill. Last month she took in 5,000 in sales revenue and paid 3,400 in out-of-pocket costs. Did the lumberyard make an economic profit last month?
a. Definitely not.
b. Yes. After considering non-zero explicit and implicit costs, it is clear that her profit is exactly equal to 1,600.
c. Without knowing the magnitude of implicit costs, it is not possible to state whether the lumberyard earned an economic profit last month.
d. Yes, after factoring implicit costs, it is clear that her profit will exceed 1,600.

Question 2

Disparate treatment refers to:
a. the treatment of individuals on the basis of their race, sex, color, religion, or national origin.
b. the treatment of individual workers on the basis of their opportunity costs.
c. the treatment of individual workers on the basis of their marginal productivities.
d. discriminatory treatment of the individuals due to lack of correct information.
e. the discriminatory treatment of firms by the trade unions.