Author Question: A business owner makes 50 items a day. She spends 8 hours in producing those items. If hired ... (Read 24 times)

jCorn1234 · **on:** Jul 1, 2018

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