The next 3 questions deal with the following situation. Jennifer has a home business selling women's headscarves. She earns $3,000 per month in rev- enue, and spends $500 per month on materials. She also hires a part-time worker, whom she pays $500 per month in hourly wages. Utilities cost $400 per month. Finally, she spends $100 per month maintaining a quality web- site, which she uses to conduct internet marketing. 13. What is Jennifer's variable cost of production? (A) $1,500. (B) $1,400. (C) $1,000. (D) $100. 14. What is Jennifer's accounting profit? (A) $1,500. (B) $1,000. (C) $2,000. (D) $3,000. 15. Suppose that if Jennifer were not running her headscarves business, she could make $2,000 per month working in retail. What is her economic profit? (A) $1,500. (B) -$1,000. (C) -$500. (D) $2,000.

The next 3 questions deal with the following situation. Jennifer has a home business selling women's headscarves. She earns $3,000 per month in rev- enue, and spends $500 per month on materials. She also hires a part-time worker, whom she pays $500 per month in hourly wages. Utilities cost $400 per month. Finally, she spends $100 per month maintaining a quality web- site, which she uses to conduct internet marketing. 13. What is Jennifer's variable cost of production? (A) $1,500. (B) $1,400. (C) $1,000. (D) $100. 14. What is Jennifer's accounting profit? (A) $1,500. (B) $1,000. (C) $2,000. (D) $3,000. 15. Suppose that if Jennifer were not running her headscarves business, she could make $2,000 per month working in retail. What is her economic profit? (A) $1,500. (B) -$1,000. (C) -$500. (D) $2,000.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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