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
Q: Which of the following describes Keynes' position in fighting recessions? O A. Keynes emphasized…
A: According to Keynesian macroeconomics, price and wages are inflexible. Any change in the market…
Q: 5 In one country, the current account deficit is at the level of 10 billion dollars. This…
A: Deficit of Currents account A deficit occurs when the amount of money leaving the country exceeds…
Q: 11. Lola starts a consulting business for companies. She makes all the business decisions and bears…
A: * ANDWER :- (11) From the given information the answer is given below as ,
Q: The current economic fallout from China's Covid-19 lockdowns -zero Covid-19 policy- is widening both…
A: IS-LM Model IS and LM model determines the relationship between the Product market and Money…
Q: The Philippines has the highest Gini coefficient among ASEAN's six argest economies“ at 41.58%.…
A: Given information Gini coefficient of Philippines=41.58%=0.4158 Gini coefficient=area of A/Area of…
Q: 1. Due to the creation of the multiverse, two parallel universes, Universe 30.13 and Universe 30.14,…
A: Gini index is the area between the uniform equality line and the Lorrenz curve . Area under…
Q: 25. In a market, the inverse supply function is given by p°(q) = aq +b for some positive constants a…
A: We have linear supply curve for the respective firm. And producer surplus is the area above the…
Q: A firm operates in a perfectly competitive market and is producing at the profit-maximizing output.…
A: In a perfectly competitive market, there are many firms producing identical goods. Firms do not have…
Q: Identify and explain the main factors that determine long-run economic growth. How do they relate to…
A: So here are the answer that the economic development is fueled by three basic factors.
Q: Describe how the government in Canada is structured.
A: The legal and social framework, the maintenance of competition, the provision of public goods and…
Q: The J. Godfrey, Capital account has a credit balance of $19,000 before closing entries are made. If…
A: capital refers to the resources invested in the business. Capital accounts have a normal credit…
Q: 2. James is an undergraduate student who has £800 of income to spend each semester on pizza and…
A: Budget constraint shows all the possible combinations of bundles that the consumer is able to…
Q: A worker earns £15 pounds an hour and chooses to work six hours a day. The worker has no other…
A: Given information W=15 per hour Hours of work=6 hours per day.
Q: closing case Megahertz Communications Established in 1982, U.K.-based Megahertz Communications…
A: Since you have posted multiple questions, we will solve first question for you. In case you want…
Q: 1. Doreen is looking for a flat to rent in Brighton. a. In choosing a flat, she cares about two…
A: Given information U=min(X,2Y) X= Number of bedrooms Y=Number of bathrooms Total income=1000 Price of…
Q: Suppose the supply curve of a product is given by P = 5 + 0.1Q, where P is the daily rent per unit…
A: * SOLUTION :- Given that , Product P = 5 + 0.1Q The demand curve for the product is 20 –…
Q: If the opportunity cost of working outside the home decreases then it is likely that assuming all…
A: 2) The opportunity cost is the cost of giving up the next best alternative for the current…
Q: A Machine costs ₱80,000 and an estimated life of 10 years with a salvage value of ₱5,000. What is…
A: Given:- Initial cost of asset(Machine)=P80,000Life=10 yearsSalvage value=P5,000 To calculate:- Book…
Q: 3. Consider one of the many bakeries that serves a local community. Each bakery produces a slightly…
A:
Q: A monopolist has the demand and marginal cost as shown in the table below. There is no fixed cost in…
A: The monopolist is the person who has full control over the market.
Q: According to Jason Hickel how do rich countries de-develop?
A: They can de-develop, according to Hickel, by limiting economic growth and abuse, which leads to…
Q: Economics Question 9 Which of the following is not true about Lindahl pricing? O a. There is…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: (a) Stan and Ollie are two students who share a flat. Both of them prefer to liıve in à clean Ilal.…
A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…
Q: 11) what is the equilibrium output and price?
A: Equilibrium is the point where the objectives of all producers and the consumers are satisfied and…
Q: Which of these market structures is not correctly described? Monopolistic Competition Oligopoly…
A: Introduction Monopoly: Monopoly is said to exist when one firm is the sole seller of a product which…
Q: An economy produces three products, bags, computers and shirts. The prices and quantities of these…
A: GDP measures the market value of final goods and services produced by an economy during a given…
Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC =…
A: Average cost is the ratio of total cost and quantity
Q: Which of the bank safety regulations enacted in the 1930s do you believe are most important in…
A: The bank is an institution that plays an important role between households and businesses.…
Q: The figure below shows the MWTP ($ per year) to lower indoor carbon monoxide of 3 students living in…
A: Socially efficient level of carbon monoxide concentration occurs at the following point: ΣMWTP =…
Q: Consider a Cournot competition game. The market demand function is: p = 4 – q1 – q2, - - where p is…
A: Nash equilibrium is the theorem of a decision making which means a player can achieve the desired…
Q: 4. There are two individuals, and two goods: private X and public G. The prices of both goods are…
A: When the individuals choose what to contribute individually they simultaneously optimize there…
Q: In product development, give two factors in relation to economic considerations and explain its…
A: Economics is the branch of knowledge in which we study scarce resources and unlimited wants.…
Q: QUESTION 1 How long is "the short" run in economics? A a period in which all inputs are fixed & a…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: a.) How much is the total profit? b.) Determine the expected rate of return (r) c.) Determine the…
A: The real interest rate adjusts the located marketplace interest rate for the outcomes of inflation.…
Q: Choose the Letter of the Correct Answer. 1. It is an act of laying a tax. A. Theory of tax B.…
A: Tax is a way to contribute to the government (local, state or national) revenue. It is imposed by…
Q: Use the information in the table to answer the following question Income Amount of % of Income Tax…
A: There are three types of tax: 1. Progressive 2. Regressive 3. Proportionate
Q: 3 Assume that Peter's short run Total Cost Curve is TC = 20,000q– 200q² +q° . %3D At an output…
A: ATC alludes to total expense separated by the total quantity of result produced.
Q: A recently hired chief executive officer wants to reduce future production costs to improve the…
A: The equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset…
Q: Question 2 Ani Given the perfect competitor firm's supply curve below, what is the shutdown price?…
A: A perfectly competitive firm produces output where P=MC and price is given to it.
Q: 7. ratio analysis. Interest rate is 4%. For the data below, select the best alternative using the…
A: A B C Initial Cost -230000 -200000 -220000 Annual Benefit 54000 39000 41000 Salvage value…
Q: Discuss how nations use expenditure-changing policies and expenditure-switching policies to achieve…
A: Balance of trade is the difference between exports and imports of goods and services. It is positive…
Q: 4. The graph below shows the efficient contracts and the contract curve. a. Explain the relationship…
A: When applied to an edgeworth box, the definition of a contract curve is just the addition of all of…
Q: 2. In 2016 Obama's administration presented a new budget plan. It proposed an increase in BCA cap…
A: Consider that during the early piece of 2020, the US economy entered a downturn because of the…
Q: Calculate the needs of working capital A company plans annual operating costs of 3.65 mil. EUR. Due…
A: The type of capital required for funding operations and meet short-term obligations is known as the…
Q: An industry "cluster" arises because of the increase of productivity of the firms participating in…
A: An industry "cluster" refers to many industries popping up at the same place i.e. nearby each other…
Q: use an appropriate diagram, to explain how the permanent income theory of consumption renconciles…
A:
Q: 4. What kind of liability insurance protects you now as an EMT and paramedic in your clinical sites?
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
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
|
If a firm is maximizing its profit and is earning positive economic profit, which of the following must be true?
|
A-
|
|
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
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2 Marginal cost: MC = q where q is an individual firms quantity produced. The market demand curve for this product is Demand:QD = 120 P where P is the price and Q is the total quantity of the good. Currently, there are 9 firms in the market. a. What is each firms fixed cost? What is its variable cost? Give the equation for average total cost. b. Graph average-total-cost curve and the marginal-cost curve for q from 5 to 15. At what quantity is average-total-cost curve at its minimum? What is marginal cost and average total cost at that quantity? c Give the equation for each firms supply curve. d. Give the equation for the market supply curve for the short run in which the number of firms is fixed. e. What is the equilibrium price and quantity for this market in the short run? f. In this equilibrium, how much does each firm produce? Calculate each firms profit or loss. Is there incentive for firms to enter or exit? g. In the long run with free entry and exit, what is the equilibrium price and quantity in this market? h. In this long-run equilibrium, how much does each firm produce? How many firms are in the market?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).33 - Which of the following will maximize profit? a) MR=TC B) MR=AC C) MC=TC D) MC=AC TO) MC=MR
- 48. In calculating economic profits, one needs to account for either implicit or explicit costs. only implicit costs. both implicit and explicit costs. only explicit costs.1. What is the difference between accounting profit and economic profit? How could a firm earn positive accounting profit but negative economic profit? 2. Why is the marginal revenue of a perfectly competitive firm equal to the market price? 3. Would a perfectly competitive firm produce if price were less than the minimum level of average variable cost? Would it produce if price were less than the minimum level of short-run average cost? 4. What is the shutdown price when all fixed costs are sunk? What is the shutdown price when all fixed costs are nonsunk? 10. Explain the difference between the following concepts: producer surplus, economic profit, and economic rent. 9.5. A competitive, profit-maximizing firm operates at a point where its short-run average cost curve is upward sloping. What does this imply about the firm’s economic profits? Briefly explain. 9.8 Dave’s Fresh Catfish is a northern…11. The graph below shows the marginal revenue, marginal cost, and average total cost at different quantities for a firm in a perfectly competitive market. If this firm chooses to produce no output in the short run, what must the market price be? A-Below $20 $21-$30 $31-$40 $41-$50 Above $50 7. firm's implicit costs are $10,000, explicit costs are $5,000, and its total revenue is $10,000. This firm is earning A-normal accounting profit B-positive accounting profit of $5,000 C-positive economic profit of $5,000 D-normal economic profit E-negative accounting profit of $5,000
- 2. Explain the difference between economic profit and accounting profit.Your 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$0Q 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.…
- 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?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.41. A computer company produces affordable, easy to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, $350 for the fourth, $400 for the fifth, $450 for the sixth, and $500 for the seventh. Create a table that shows the company’s output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for $500, is it making a profit or a loss? How big is the profit or loss? If the firm sells the computers for $300, is it making a profit or a loss? How big is the profit or loss?
