ECO 2010 INCLUSIVE ACCESS
21st Edition
ISBN: 9781260564624
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 21, Problem 1P
Subpart (a):
To determine
Whether the valley will be ruled as a monopoly .
Subpart (b):
To determine
can the valley be ruled as monopoly by the court when all barriers are relevant.
Subpart (c):
To determine
When all fruits are there, can the valley be ruled as monopoly by court.
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What are the answers for parts a and b? Thanks
What are the answers for a,b,c,d? Are they supposed to be numerical answers or in terms of a variable?
Sue is a sole proprietor of her own sewing business. Revenues are $150,000 per year and raw material (cloth, thread) costs are $130,000 per year. Sue pays herself a salary of
$60,000 per year but gave up a job with a salary of $80,000 to run the business.
○ A. Her accounting profits are $0. Her economic profits are - $60,000.
○ B. Her accounting profits are $0. Her economic profits are - $40,000.
○ C. Her accounting profits are - $40,000. Her economic profits are - $60,000.
○ D. Her accounting profits are - $60,000. Her economic profits are -$40,000.
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