You own two different energy drink brands: Blue Cow and 600 minute energy.. If you reduce the price ...

You own two different energy drink brands: Blue Cow and 600 minute energy.. If you reduce the price on Blue Cow,
 a. Sales of Blue Cow would increase, without any changes in sales for 600 minute energy..
 b. Sales of both Blue Cow and 600 minute energy.. would increase
 c. Sales of Blue Cow would increase, but the sales of 600 minute energy would be cannibalized
 d. Neither Blue Cow nor 600 minute energy would see an increase in sales.

QUESTION 2

A business owner makes 50 items a day. She spends 8 hours in producing those items. If hired elsewhere she could have earned 10 an hour. The item sells for 10 each. Production occurs seven days a week. If the explicit costs total 10,000 a month the economic profit for the month equals:
 a. 2,600
 b. 2,240
 c. 11,760
 d. 5,000

QUESTION 3

Acquiring a firm that sells a substitute good would make the demand curve for your original product
 a. More inelastic
 b. More elastic
 c. Unchanged
 d. None of the above

QUESTION 4

A business owner makes 50 items a day. He spends 8 hours in producing those items. If hired elsewhere he could have earned 10 an hour. The item sells for 10 each. Production occurs seven days a week. If the explicit costs total 10,000 a month, the accounting profit for the month equals:
 a. 1,760
 b. 2,240
 c. 11,760
 d. 5,000

QUESTION 5

Accountants and Economists differ in their calculations of profits in that;
 a. economists consider sunk costs
 b. accountants consider implicit costs only
 c. accountants consider explicit costs only
 d. all of the above