You have a small business that makes $50,000 accounting and economic profit for you. as a disabled person, you must work at home and you did not have other opportunities until your neighbor offers you a job you like equally well for $50,000 and you can do it at home. this means a. your accounting profit has gone down and your economic profit has gone up. b. your economic profit has gone down and your accounting profit has stayed the same. c. your economic profit has gone down and your accounting profit has gone up. d. both of your economic profit and accounting profit have gone up.

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?