ECON-102-Fall-2012-Exam-3-Version_A_and_C

# A 41 b 9 c 24 d none of the other

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Unformatted text preview: on the equipment loan is LARGER than the interest rate he can earn on the savings account. John’s accounting profit _____ and his economic profit _______. a. Stays the same, stays the same. b. Rises, rises. c. Stays the same, rises. d. Rises, stays the same. 3 ECON 102 NAME: _______________________ FALL 2012 EXAM- 3 VERSION A USE THIS INFORMATION TO ANSWER THE NEXT 4 QUESTIONS You work as a tutor on campus. Assume you work on a competitive market and your production function is given in the table below, and you also have the following operating costs: 1) Salary you could make bartending = \$15/hr 2) Internet connection = \$50/week # of hours 0 1 2 3 4 # of clients 0 4 7 9 10 10. If you work 1 hour a week and charge \$6/hr for your services, then you make ________ of economic profits with the first hour of tutoring. a. \$- 41 b. \$- 9 c. \$24 d. None of the other choices is correct 11. How many hours of tutoring you should work each week? a. 0 b. 1 c. 2 d. 3 e. 4 12. If the costs of your internet connection was \$100 (instead of \$50), would you have to change the answer you provided in the previous question? a. yes b. no c. maybe 13. Say you own a business that sells t- shi...
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