1. Zero economic profit for a firm means _____. (Check all that apply.)

a- it receives no normal profit

b- its total revenue equal its total cost

c- its accounting profit is also zero

d- its accounting profit equals its implicit costs

2. Erin quit her job, where she earned $90,000 per year, to start her own economic consulting firm. She invested $60,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm's costs were $50,000 for rent on the office building, $300,000 for wages and salaries of employees, and $10,000 for supplies and utilities. The market value of the firm's assets at the end of the year was $48,000. During the year, the firm billed its clients for 2,400 hours at $200 per hour. The typical rate of return on financial investments in the economy was 5%.

In this scenario, Erin's accounting costs were $________

her cost of capital was $_______

her total costs were $_______

her economic profit $_______

and her normal profit was $_____

3. In the scenario above, if Erin earned $110,000 per year at her previous job, her consulting firm's economic (profit/loss)_________would be $______

4. Stella's Pizza is a pizzeria operating in a competitive market. Its short-run production function is shown below. Stella's weekly cost of plant is $900, its cost of labor is $400 per worker, and its cost of the ingredients used to make pizza is $4 per pie. The going market price of pizza is $12 per pie. In this scenario, Stella's is technically efficient if it employs _____ workers and produces _____ pizzas. (Check all that apply.)