113. Suppose the city of Austin, TX chooses to regulate the number of street vendors operating on "the Drag," near the University of Texas. Prior to regulation, the costs (including implicit costs) of operating was $85,000 and revenues were $150,000. The city ordinance allows the permits to be bought and sold without restriction and permits were issued to all current vendors. The interest rate is 10 percent. Suppose the interest rate rises from 10% to 12%. The price of a permit is now Answer A) $722,222. B) $650,000 C) $541,666. D) $78,000. E) $65,000. Value: 1 129. If owners of a business are receiving total revenues sufficient to cover all their explicit and implicit costs, they are Answer A) earning economic profits. B) enjoying a normal profit. C) earning economic losses. D) doing better than their next best alternative. E) doing worse than their next best alternative. 131. Accounting profits minus economic profits equals Answer A) zero. B) explicit costs. C) some negative number. D) normal profit. E) implicit costs. 109. Suppose the city of Austin, TX chooses to regulate the number of street vendors operating on "the Drag," near the University of Texas. Prior to regulation, the costs (including implicit costs) of operating was $85,000 and revenues were $150,000. The city ordinance allows the permits to be bought and sold without restriction and permits were issued to all current vendors. The interest rate is 10 percent. Max, one of the current street vendors, has gone from earning an economic profit to earning a normal profit because Answer A) fewer people come to shop. B) his explicit costs have risen by $65,000. C) his revenues have fallen by $65,000. D) his implicit costs have risen by $65,000. E) his implicit costs have risen by $650,000. 16. When total revenues are less than the sum of explicit and implicit costs, Answer A) accounting profits are negative. B) normal profits are zero. C) the firm is experiencing an economic loss. D) economic profits are negative but normal profits are positive. E) accounting profits are positive.