Suppose a Professor Gives Up Her Teaching Job to Devote

question 137

Multiple Choice

Suppose a professor gives up her teaching job to devote her time to writing textbooks. If salaries of professors rise,

• A) her accounting profit will rise.
• B) her accounting profit will fall.
• C) her explicit costs will rise.
• D) her economic profit from textbooks will fall.
• E) her economic profit from textbooks will rise.

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Definitions:

Private Decisions

Choices made by individuals or businesses in the private sector, typically regarding consumption, investment, or production.

Efficiency

The effectiveness with which resources are used to achieve a desired outcome, maximizing outputs from given inputs without waste.

Transferable Rights

Rights that can be assigned or transferred from one party to another.

Pollution

The presence or introduction into the environment of contaminants that cause harm or discomfort to organisms and the environment.