MindTap Economics, 2 terms (12 months) Printed Access Card for Mankiw's Principles of Economics, 8th (MindTap Course List)
8th Edition
ISBN: 9781337096539
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 22, Problem 10PA
Subpart (a):
To determine
Applying the concepts ofasymmetric information and behavioral economics.
Subpart (b):
To determine
Applying the concepts ofasymmetric information and behavioral economics.
Subpart (c):
To determine
Applying the concepts ofasymmetric information and behavioral economics.
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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.
Chapter 22 Solutions
MindTap Economics, 2 terms (12 months) Printed Access Card for Mankiw's Principles of Economics, 8th (MindTap Course List)
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