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.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter26: Earnings, Productivity, And The Job Market
Section: Chapter Questions
Problem 10CQ
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