Assume that the consumer depicted in the figure above has an income of $40, the price of a bag of marshmallows is $2,

Consider the two goods from the prior question: beer and hamburgers.  The slope of the consumer's budget constraint is measured by the
relative price of beer and hamburgers

Economists represent a consumer's preferences using
indifference curves

All of the following are properties of indifference curves except
indifference curves are bowed outward

Utility measures
the satisfaction a consumer receives from consuming a bundle of goods

When the price of pizza falls, the income effect (for normal goods Pepsi and pizza) causes
the consumer to feel richer, so the consumer buys more Pepsi

When the price of pizza falls, the substitution effect (for normal goods Pepsi and pizza) causes
Pepsi to be relatively more expensive, so the consumer buys less Pepsi

The goal of the consumer is to
all of the above

Assume that the consumer depicted in the figure above has an income of $40, the price of a bag of marshmallows is $2, and the price of a bag of chocolate chips is $2. The optimizing consumer will choose to purchase which bundle of marshmallows and chocolate chips?
C

Economists normally assume that the goal of a firm is to
maximize its profits

Profit is defined as total revenue
minus total cost

An example of an explicit cost of production would be the
lease payments for the land on which a firm's factory stands

Suppose that for a particular business there are no implicit costs. Then
accounting profit will be the same as economic profit

John has been working for a law firm and earning an annual salary of $80,000. He decides to open his own practice. His annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. John will cover his start-up expenses by cashing in a $20,000 certificate of deposit on which he was earning annual interest of $500. (Use the information provided above to answers the following 3 questions)
John's annual economic costs will equal
$135,700