A business owner makes 50 items a day. She spends 8 hours in ...

[jCorn1234]

A business owner makes 50 items a day. She spends 8 hours in producing those items. If hired elsewhere she could have earned 10 an hour. The item sells for 10 each. Production occurs seven days a week. If the explicit costs total 10,000 a month the economic profit for the month equals:
 a. 2,600
 b. 2,240
 c. 11,760
 d. 5,000

Question 2

Acquiring a firm that sells a substitute good would make the demand curve for your original product
 a. More inelastic
 b. More elastic
 c. Unchanged
 d. None of the above

[af]

Answer to Question 1

a

Answer to Question 2

a

[jCorn1234]

Excellent

[bitingbit]

Gracias!