Ch11_12_part2_Practice_Problems

# C 25 and her economic profits are 100 d 75 and her

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ly d. (i), (ii), (iii), and (iv) 6. Katherine gives piano lessons for \$15 per hour. She also grows flowers, which she arranges and sells at the local farmer’s market. One day she spends 5 hours planting \$50 worth of seeds in her garden. Once the seeds have grown into flowers, she can sell them for \$150 at the farmer’s market. Katherine’s accounting profits are a. \$100, and her economic profits are \$25. b. \$100, and her economic profits are \$75. c. \$25, and her economic profits are \$100. d. \$75, and her economic profits are \$125. Scenario 1: Suppose that Emily opens a restaurant. She receives a loan from a bank for \$200,000. She withdraws \$100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%. 7....
View Full Document

## This document was uploaded on 04/06/2014 for the course ECON 1 at UCLA.

Ask a homework question - tutors are online