Refer to the Given Data

question 215

Multiple Choice

Refer to the given data. If the prices of labor and capital are $9 and $15, respectively, and labor and capital are the only inputs, the firm's economic profits will be

• A)$102.
• B)$82.
• C)$67.
• D)$28.

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Definitions:

Consumer Surplus

The variance between the amount consumers are inclined to pay for a good or service and what they actually pay.

Wage Rates

The standardized amount of money paid for a specific quantity of labor or output, typically expressed as an amount per hour.

Autarky

An economic system where a country seeks to be self-sufficient and limit trade with foreign nations.

Consumer Surplus

The disparity between consumers' willingness to pay for a good or service and their actual payment amount.