Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. If the wage rate is $11 and Manfred's only fixed input is capital, the total cost of which is $40, then what will be his economic profit?
A)102
B)56
C)62
D)47

Question

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively.  If the wage rate is $11 and Manfred's only fixed input is capital, the total cost of which is $40, then what will be his economic profit?
A)102 
B)56 
C)62 
D)47

Quizplus · Accepted Answer

The Answer of Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively.  If the wage rate is $11 and Manfred's only fixed input is capital, the total cost of which is $40, then what will be his economic profit?
A)102 
B)56 
C)62 
D)47

Assume Manfred's Shoe Shine Parlor Hires Labor, Its Only Variable