Suppose Cho earns $625 per week working as an analyst for A-Plus Accountants. She uses $8 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Bob $325 per week to work the cash register. Bob uses $100 to purchase tax services from A-Plus Accountants. Identify whether each of the following events in this scenario occurs in the market for factors of production or the market for goods and services. Event Market for Factors of Production Market for Goods and Services
Cho spends $8 to buy a box of aspirin.
Bob earns $325 per week working for Pillmart Pharmacy.
Cho earns $625 per week working for A-Plus Accountants.

Which of the elements of this scenario represent a flow from a firm to a household?

a. The $325 per week Bob earns working for Pillmart Pharmacy
b. The $325 Bob spends to purchase medical services from the Medical Clinic
c. The aspirin Cho receives
d. Cho's labor

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.

10.     lucy is catering an important luncheon and wants to make sure her bisque has the perfect consistency. for her bisque to turn out right, it should have the consistency of a. cold heavy cream. b. warm milk. c. foie gras. d. thick oatmeal. student d   incorrect