Sure, here is my possible correct answer:
1. 38.64 - 34.50 = 4.14
2. 4.14 x 600 = 2484
So, Mitchell would earn $2484 in (gross) profit.
I hope it helped you!
Answer:
U.S. GDP = $440
Explanation:
If Texas household receives a Social Security check for $, and after calculating the purchases the US GDP is as follows:
Shoes from the Thai and korean firm is part of imports
Imports = $40 + $1240 = $1280
Domestic consumption = $220
Security check is part of government spending = $1500
GDP =$1500 + $220 - $1280 = $440
Answer: C. inefficiently low; inefficiently high
Explanation:
If the cotton farmers are not made to pay for the damage that their pesticides cost then they will maintain production at a relatively high level because their input costs will be relatively low. As a result of this high level of production, the price of the goods will be relatively low as well. The point at which both market equilibrium quantity and price are at in this scenario are considered inefficient because they are not taking into account, the true cost of production being the effects of the pesticides being used.
However, if they are made to pay for this negative externality that they are the cause of, it will increase their production cost and force them to reduce production to keep these costs low. As they reduce production, the market price will increase as supply is less.
Answer:
C. There may be economic profits in the short run, but not in the long run.
Explanation:
Perfect Competition is a market structure with very large no of buyers & sellers, transacting homogeneous products, at same price (firms 'price taker') & inelastic demand, with free entry & exit into industry.
Economic profit is the profit earned above normal profit - covering revenues over explicit & implicit costs, necessary to continue business operations.
Free entry & exit into Perfect Competition Industry makes them earn only normal profits - no super normal (economic) profit , abnormal loss in long run
Short Run Economic Profits : Induces new firms entry and supply increases, reducing the industry & firms' price. This reduces their profit & resumes back the normal profits.
Similarly - Short Run Abnormal Losses : Induce existing firms exit, will reduce supply, increase price & profit, resume back to normal profits.
