Suppose a professor gives up her teaching job to devote her time to writing textbooks. If salaries of professors rise,
A) her accounting profit will rise.
B) her accounting profit will fall.
C) her explicit costs will rise.
D) her economic profit from textbooks will fall.
E) her economic profit from textbooks will rise.

Question

Quizplus · Accepted Answer

Her economic profit from writing textbooks will fall because the opportunity cost of not being a professor (the foregone salary) has increased.

Suppose a Professor Gives Up Her Teaching Job to Devote