10. If a firm is choosing to operate that means they have a a. positive accounting profit b. Positive or 0 economic profit c. Positive total revenue d. None of the above
Q: Problem 3: Consider a pure exchange economy with two consumers (A and B) and two goods (X and Y).…
A: A pure exchange economy is where there is no production and all individuals are endowed with one or…
Q: 8. In the town of Springfield, there are two large firms that emit sulfur dioxide to the…
A: Marginal damage in economics is defined as the additional damage or harm done on society which leads…
Q: Federal funds are short-term loans made by the Federal Reserve to government agencies such as Fannie…
A: The commercial banks and other institutions having excess reserves are known as federal funds. It is…
Q: (a) Carefully comment on the picture below, which represents the value function according to…
A: The 1979 development of prospect theory by psychologists Daniel Kahneman and Amos Tversky explains…
Q: In August of 2019, the number of employed persons in the United States was 144.2 million, the number…
A: The labor force comprises of total number of people who are actively employed and are looking for…
Q: Tropic Industrials Ltd. is a cement manufacturing company located in Old Harbour St. Catherine…
A: Based on the information provided, here are some key observations from the weekly demand pattern…
Q: How many more workers will the firm hire when the wage rate is $15 instead of $30?
A: In a purely competitive market for resources, firms aim to maximize their profits by determining the…
Q: 3. In a small community, breakfast is the most important meal of the day. Therefore, the only two…
A: The GDP, or gross domestic product, is a crucial economic metric that shows the entire amount of…
Q: If the capital/labor ratio in import - competing industries in country A is $8,000 per worker and…
A: This question asked us to calculate the Leontief Statistic for country A based on the provided…
Q: Demand for boxes of pomegranate is given by p=12-0.0025Q Calculate the price elasticity of demand…
A: In economics, price elasticity of demand, or PED, is a metric used to express how responsively the…
Q: Profit is the incentive that drives our market economy. Firms make production, pricing, and hiring…
A: Profit is the financial gain that a producer receives from its production activity. Earning profit…
Q: 12) The table below shows labor statistics for some country for 2021 and 2022. What was the labor…
A: The labor force participation rate is the percentage of the working-age population that is either…
Q: Output 10 Total Cost $ 250 300 260 250 290 200 350 150 500 100 680 4 Refer to the demand and cost…
A: The pricing strategy under which the seller charges each individual consumer the maximum price they…
Q: monopolistic competition
A: The characteristics and market structure that determine how the goods and services are bought and…
Q: . Apple uses labour and machines to produce iPhones according to the production f y = L&M, where L…
A: We have the following two equations:y = L1/4M1/4 -----------> eq(1)and L =4M ------------->…
Q: a. Suppose the market for apples can be described by the graph below $11 Price $6 $4 D 200 Quantity…
A: The consumer surplus is the welfare received by a consumer when he purchases a good at a price lower…
Q: After suffering two years of staggering hyperinflation, the African nation of Zimbabwe officially…
A: Foreign currency means the currency of a country other than the one in which you are currently…
Q: Which president's fiscal policy included lower corporate profit and income tax rates, along with…
A: Fiscal policy refers to the government's use of spending and taxation to influence the economy. It…
Q: Price Level b Multiple Choice O AS Real Domestic Output O U a Refer to the diagram. Rational…
A: This problem asked us to evaluate the impact of a fully anticipated shift in aggregate demand from…
Q: (Figure: Fiscal Policy Choices) Use Figure: Fiscal Policy Choices. If the government uses…
A: Fiscal policy is the instrument used by the government of the nation to ensure price stability and…
Q: O the green line and red line only meet at Park Street The red line is most likely total cost O the…
A: Total revenue is the total amount of revenue earned by selling the units of the commodity at a…
Q: what does it mean to say that the optimal amount of investment in a risky asset is independent of…
A: The phrase in question pertains to investment theory and the decision-making process regarding the…
Q: A manufacture has been selling 1350 television sets a week at $450 each. A market survey indicates…
A: x: Number of television sets sold per weekp(x): Demand function, representing the price per set at…
Q: Which of the following will restore an economy to full employment if it is operating below full…
A: To comprehend how an economy can recuperate to full work, particularly while it's working beneath…
Q: P 10 9 8 7 6 5 4 3 2 0 MC hours ATC MR 100 200 300 400 500 600 700 800 900 1000 1100 1200 Q 2. How…
A: This question asked us to determine Star Helix's optimal output level. And The price charged for…
Q: Table: Consumer Surplus This table shows some Atlanta college students' willingness to pay to see…
A: Consumer surplus is an economic concept that measures the monetary benefit consumers receive from…
Q: Price Level 0 ASS a b c Real GDP Refer to the figure above. If aggregate supply is AS, and aggregate…
A: Real output also known as real GDP is the value of the gross domestic product of the nation, which…
Q: Çağla Ökten 1. Each day, Burcu, who is in third grade, eats lunch at school. She likes only Twinkies…
A: Utility function is the mathematical expression that denotes the total utility gained from consuming…
Q: When the U.S. debt-to-GDP ratio has fallen, it has generally been because: the budget deficit fell.…
A: The debt-to-GDP ratio is a metric that compares a country's public debt to its gross domestic…
Q: Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three…
A: Consumer Surplus is the sum of all the differences between the market price and the maximum…
Q: Which of the following statements is correct? Select one: a. the use of tradeable permits and…
A: This type of tax is often referred to as Pigouvian taxes, which are levies imposed by govt. on…
Q: Table 17-4 Only two firms, ABC and XYZ, sell a particular product. The following table shows the…
A: This question asked us to determine the equilibrium price in a perfectly competitive market, given…
Q: Suppose that a monopolist's market demand is given by P= 180-20 and that marginal cost is given by…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Which of the following statements is a positive statement? O a) Bankers' bonuses should be taxed.…
A: Understanding the differentiation between positive and regularizing proclamations is pivotal in…
Q: 4. The multiplier effect of a change in government purchases Suppose there is some hypothetical…
A: The spending multiplier refers to the factor by which a change in autonomous spending changes the…
Q: It was administered to 5,834 people in Lagos, Nigeria where the community is experiencing an Ebola…
A: INTRODUCTION: In general, a total of 5,834 individuals were tested for signs of the disease during…
Q: Dreher's Designer Shirt Company, a monopolist, has the following cost and revenue information. What…
A: Marginal revenue is the change in TR. It is the change in TR divided by the change in quantity…
Q: According to economic theory, what do consumers maximize? Consumers maximize marginal utility.…
A: In economics, the analysis of consumer behavior plays a pivotal role in understanding how markets…
Q: ose the demand and supply curves for unskilled labor in the labor market are as shown in the…
A: A labor market is a market where people offer their skills to employers in exchange for wages,…
Q: Suppose there are only two polluting firms, called A and B, with the following marginal abatement…
A: Marginal abatement cost (MAC) measures the cost of reducing one more unit of pollution. Marginal…
Q: Refer to Figure 9.10 to answer this question. Which of the following statements is true if external…
A: The image you supplied depicts a supply and demand graph with four distinct prices called P1, P2,…
Q: There are three industrial firms in a town Firm Initial Pollution Level Cost of Reducing Pollution…
A: Pollution refers to the act of contaminating the environment by the harmful use of chemicals that…
Q: 1000 Real GDP What is the price level in the new long-run equilibrium as a result of this shift? NƠ…
A: Aggregate demand curve represents the sum of quantity demanded by all the consumers in the economy…
Q: The terms of credit is 1. combination of interest rate, collateral and documentation requirement,…
A: Credit terms are fundamental to any borrowing and lending agreement. They encompass the conditions…
Q: 10 0 D2 OD₁ED₁. OD₂ED2. OD₁ED2. D₂ED1. DI E 2000 QUANTITY andy's Salmon is an oligopoly. Sandy's…
A: The dominance of a few strong firms can have a big impact on pricing and market share in an…
Q: Discuss the role of education and skill development in determining an individual's earning potential…
A: The question invites an exploration into the economic theories that correlate educational attainment…
Q: An assembly line can produce 60 units per hour. The line's hourly cost is $3600 on straight time…
A: The per unit cost of production of a good or a service is known as its average cost (AC). However,…
Q: Price Level O AS₁ a ASO O b c Real GDP Refer to the figure above. If aggregate supply is AS, and…
A: Aggregate demand refers to the overall number of goods and services that the whole population in the…
Q: 1. A standard model of choice under risk is Expected Utility Theory (EUT) in which preferences over…
A: The question is asking about the Expected Utility Theory (EUT), a model of choice under risk, and…
Q: Carlos takes 2 hours to pick a box of apples and 1 hour to make an apple pie. Son takes 4 hours to…
A: This problem asked us to identify the statement that is NOT true among the given options regarding…
10. If a firm is choosing to operate that means they have a a. positive accounting profit b. Positive or 0 economic profit c. Positive total revenue d. None of the above
Step by step
Solved in 3 steps
- 5. If a firm makes zero economic profit, then the firma) earns revenue that exceeds its economic costs.b) must shut down.c) can be earning positive accounting profit.d) has no fixed costs.8- A business is below the economic break-even point and above the operational break-even point. Therefore, it can be said that: *a) gives operating and economic profitb) gives economic profit and operating lossc) gives operating profit and economic lossd) causes economic and operational lossYour aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Your aunt’s opportunity costs comprise * If your aunt thought she could sell $510,000 worth of merchandise in a year, what is your aunt’s accounting profit? *$10,000-$40,000$460,000$0Given the above situation, what is your aunt’s economic profit? *$10,000-$40,000$460,000$0
- A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is as indicated below. Output Fixed Cost Variable Cost Total Cost Marginal Cost Average Cost Average Variable Cost 1 $250 $700 $950 $700 2 $250 $925 $1175 $225 3 $250 $315 4 $250 $360 5 $250 $400 6 $250 $450 7 $250 $550 If the company sells the computers for $550, is it making a profit or a loss? How big is the profit or loss? If the firm sells the computers for $315, is it making a profit or a loss? How big is the profit or loss? We expect the marginal cost to increase as this firm produces more computers. But when the firm shifts from producing 1 to 2 computers, marginal cost falls. What might explain this?Use the following information to answer Questions 11 and 12: Suppose a dentist is organized as a sole proprietorship. Last year the dentist’s total revenue was $320,000 and total costs were $250,000. The dentist left a job paying $112,00 a year to start the business 1. According to the information in the above scenario, how much accounting profit did the dentist make last year? a. $112,000 b. $70,000 c. -$42,000 d. -$28,000 e. $128,000 2. According to the information in the scenario above, how much economic profit did the dentist make last year? a. $112,00 b. $70,000 c. -$42,000 d. -$28,000 e. $182,000 3. According to the text, economic profit serves as a beacon to entrepreneurs. This means a. A positive economic profit sends a warning to investors not to invest more. b. A negative economic profit sends a signal to investors that it is time to invest more. c. A zero economic profit sends a warning to investors not to invest more. d. A positive economic profit attracts resources…8. A firm is earning an accounting profit of $5,000. Its implicit costs are $3,000, explicit costs are $8,000, and its economic profit is $2,000. What must its total revenue be? A-$7,000 B-$10,000 C-$13,000 D-$18,000 E-Indeterminate 9. If a firm is maximizing its profit and is earning positive economic profit, which of the following must be true? A- Average total cost < price; marginal cost = marginal revenue B-Average total cost > price; marginal cost = marginal revenue C-Average total cost < average revenue; marginal cost > marginal revenue D-Total cost > total revenue; marginal cost > marginal revenue E- Total cost = total revenue; marginal cost > marginal revenue
- 6 If a company’s total revenue is $1,744,322, their explicit costs are $863,214, and their implicit costs are $506,688, then what is their Accounting profit? What is their economic profit? (Show your work).2. Explain the difference between economic profit and accounting profit.Caroline opens a lemonade stand for two hours. She spends $15 for ingredients and sells $50 worth of lemonade. In the same two hours, she could have mowed the neighbor's yard and earned $10. a. What are Caroline’s explicit and implicit costs? b. What is Caroline’s accounting profit? What is her economic profit? Show how you calculated each profit.
- 29 Refer to Figure 2. If this farmer is maximizing profit, his operating profit (or loss) is (hint: operating profit: TR-VC)Select one: a. $48 b. -$24 c. $72 d. $156Q 4 5 6 Revenue and cost figures can be observed in the table below for Greensons Organic. Use the information in the first three columns to complete the table Output /Sales(Q) Total Revenue (TR) Total Costs (TC) Profit /Loss Marginal Revenue (MR) Marginal Costs (MC) Addition to profit 0 0 8 -8 1 7 14 -7 7 6 2 14 19 -5 7 5 3 21 23 -2 7 4 4 28 26 2 7 3 5 35 28 7 7 2 6 42 31 11 7 3 7 49 38 11 7 7 8 56 48 8 7 10 2. Is Greensons Organic operating in the short run or in the long run? Justify your answer 3. Calculate average variable costs when the level of output is equal to 5 units. 4. What level of output does Greensons Organic maximize profit? Justify/explain your answer and show calculations 5. When will the diminishing marginal returns start to prevail for Greensons Organic and why? 6.…5d What is the relationship between accounting profit and economic profit? Which is relevant for a firm’s decision to continue production and why? Give examples as to what may cause a divergence between accounting and economic profit
