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Unformatted text preview: 1. Which of the following would most likely increase the demand for peanut butter? a. a decrease in the price of bread, a good that is often used with peanut butter b. a discovery that the average daily consumption of peanut butter decreases one's life span by 15 years c. crop failures that raise the price of peanuts d. a decrease in the price of all substitute protein products 2. Economic profit is best defined as a. a company's net income as indicated by its accounting statement. b. the difference between the price of a product and the monetary cost of the raw materials used to produce it. c. the difference between the revenue from the sale of a product and the opportunity cost of the resources used to produce it. d. income paid by a business to its owners. 3. The long run is a time period of sufficient length to enable a. producers to alter their use of fixed capital (the size of their plant and equipment). b. producers to alter their output by utilizing labor and raw materials more intensively. c. decision makers to adjust fully to a change in market conditions....
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- Fall '08