Author Question: Jerome, the florist, sold 500 bridesmaid's bouquets in June. He estimates his costs that month were ... (Read 69 times)

penza · **on:** Jun 30, 2018

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.