Author Question: Suppose Joan uses her savings to purchase computer equipment for her new consulting business. Soon ... (Read 74 times)

V@ndy87 · **on:** Jun 30, 2018

Suppose Joan uses her savings to purchase computer equipment for her new consulting business. Soon after this, the market interest rate rises. As a result, her
a. explicit costs rise immediately
b. accounting profit falls immediately
c. accounting profit rises immediately
d. economic profit rises immediately
e. economic profit falls immediately

Question 2

Suppose a professor gives up her teaching job to devote her time to writing textbooks. If salaries of professors rise,
a. her accounting profit will rise
b. her accounting profit will fall
c. her explicit costs will rise
d. her economic profit from textbooks will fall
e. her economic profit from textbooks will rise