Economics Homework Help

Hello I have these 2 questions with answers and I would like to have the detailed explanation

Thank you

1) 8-60

If accounting profits for a firm are 20% of output, and the opportunity cost of financial capital is 8% of output,

then what do the firm’s economic profits equal?

a) 6% of output

b) 8% of output

c) 12% of output

d) 10% of output

Correct answer : c) 

2) 8-64

In a perfectly competitive market setting, which of the following would be a true statement?

a) Market price automatically sets itself exactly at equilibrium.

b) Wage rates trend toward marginal revenue product levels.

c) Wage rates mirror marginal revenue product levels exactly.

d) Market price rarely trends toward the equilibrium value.

Answer : b)