Consider Two Resource Markets in Which the Demand Curves Slope

question 149

Multiple Choice

Consider two resource markets in which the demand curves slope downward.In market A,the supply curve is horizontal,equilibrium price is $10,and 90 units of the resource are hired.In market B,the supply curve is vertical,equilibrium price is $30,and 40 units of the resource are hired.Which of the following is correct?

• A) In market A,total earnings = $900,economic rent = $450,opportunity cost = $450
• B) In market A,total earnings = $900,economic rent = $0,opportunity cost = $900
• C) In market A,total earnings = $900,economic rent = $900,opportunity cost = $0
• D) In market B,total earnings = $1,200,economic rent = $300,opportunity cost = $900
• E) In market B,total earnings = $1,200,economic rent = $0,opportunity cost = $1,200

Understand the medical and developmental concerns associated with preterm birth and techniques for assessing such risks.

Grasp the concept of early cell division and its role in the developmental process.

Recognize the challenges faced by preterm infants and the factors influencing their developmental outcomes.

Familiarize with the concept of ethology and its relevance to human development.

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Definitions:

Break-Even Point

The level of sales at which total revenues equal total costs, and the business makes no profit but also no loss.

Sensitivity Analysis

A financial modeling technique that determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Break-Even Point

The point at which total costs and total revenues are equal, meaning the business is not making a profit or loss, a crucial figure for financial planning and management.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company’s fixed versus variable costs.