Answer: A. $70,000
No
Explanation:
Opportunity cost is the cost of forgone opportunity. It is what Jing would have earned ($70000) if she didn't start her business.
Even though Jing is making an accounting profit, her economic profit is negative,$-20,000.
Economic profit = Accounting profit - Opportunity cost
This statement on the laws that firms should obey that incudes labor and consumer protection laws is <u>True</u>.
<h3>What Laws should companies follow?</h3>
- Companies should follow all laws in a nation.
- They should especially follow those that relate to them such as labor and consumer protection laws.
The laws of a nation are for everyone in that nation including companies. Unless a law states that companies can be exempted, they are bound by all laws.
In conclusion, this is true.
Find out more on labor laws at brainly.com/question/19832789.
Answer:
a. iii. Too little
b. i. The industry's supply of cashews will exceed Q1 and the price of cashews will equal P1.
Explanation:
Allocative efficiency refers to the point in production where Marginal Revenue equals Marginal cost. As this is a perfectly competitive market, marginal revenue is the same as price which as shown in the question, exceeds Marginal cost. The firms are therefore producing too little to achieve allocative efficiency and need to produce more to make price and marginal cost equal.
In the long run, the firms will produce more such that supply would exceed the original quantity supplied of Q1. This will lead to the price falling back to P1 as there is now less scarcity.
It appears that both I and Shin Lee are acting ethically! =)
