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Rick is a potato farmer, and the world potato market is perfectly competitive. The market price is $18 a basket. Rick sells 700 baskets a week. His marginal cost is $23 a basket.   Is Rick maximizing profit? Why or why not?

You quit your job where you earned $45,000 a year to start your own widget business. To start your business, you cashed in your investments of $50,000 which earned you 10% a year in interest.  In the first year, you sold 10,000 widgets at $50 per unit.  Of that $50 per unit, $45 went towards production costs; materials, utilities, labor, marketing, packaging, lease payments, etc.    Refer to the above information. Your total revenues for the first year are:

Anneli owns a sweater shop. The number of sweaters she can sell per month depends on how many workers she hires. Workers cost $3,000 per month per worker. Fill in the table below. What is the Total cost in the last (shaded) row?

Which of the following is not a reason for the existence of monopolies?

Which kind of firm tends to sell a product for a higher price?  

How should sunk costs be used in  decision-making? In decision-making, sunk costs should:

What is being represented in the diagram above?

Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations of the goods that each country can produce in a day. Using the information from the table above, we can conclude that:

Using the diagram above, imagine that the price is set at $40. Will there be a surplus or a shortage?

Which of the following would make the demand for orange juice more elastic?