Anthony quit his job where he was earning an annual salary of $48,000 to open his own business.  Annually, he will pay $18,000 for rent, $120,000 for wages, $36,000 for raw materials.  If he receives annual revenue of $230,000, then his accounting profit will be _____ and his economic profit will be _____.   a negative; negative b negative; positive c positive; negative d positive; positive

Q: You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory…

A: Fixed cost is given to us as 1950,000 . Average fixed cost at output = 10,00,000 will be :…

Q: SCENARIO 1: You are the owner and the only employee of a company that writes computer software that…

A: Economic profit = Total revenue - Implicit costs - Explicit costs.

Q: Assuming that the apple farmer could earn $2,000 as an employee elsewhere, then the total economic…

A: Introduction Profit is basically difference between the total revenue and total cost. But total…

Q: Explain some of the different factors that would affect a firm’s profitability and what might make a…

A: The profit/loss of a firm is the amount of net benefit from to the business from participating in…

Q: 6. In the profit-volume chart next page, EF and GH represent the profit-volume graphs of a single…

A: A profit-volume (PV) chart is a graphic representation which shows the earnings or losses of a…

Q: Question attached In early 2008, you purchased and remodeled a 120-room hotel to handle the…

A: Given: Average cost per room=$70 Selling price=$20 million Cost of capital=10% no. of room…

Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…

A: The accounting profit is the difference between the revenue and the cost. The economic profit would…

Q: Suppose you have a production technology that can be characterized by a learning curve. Every time…

A: Answer: Quantity (Units) Marginal cost ($) Total cost ($) Average cost ($)= Total cost/Quantity…

Q: You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory…

A: Average Fixed Cost = Total Fixed Cost / Output Marginal Cost = Change in Total Cost / Change in…

Q: Corinne is offered a job with a salary of $70,000, which she turns down to start her own business.…

A: There are two types of profit: Economic Profit Accounting Profit The economic profit can be…

Q: Economic profits are: O total revenue less sunk costs. O total revenue less implicit costs. O total…

A: The difference between the money gained from the sale of a product and the costs of the inputs…

Q: 2. A firm can produce up to 500 units each week. If its average cost function is C(x) = 500/x + 1500…

A: We are going to solve question 2 with the concepts such as Profit maximisation and Break-even.

Q: Assume John sells milk at AUD2.50 per litre. Also, assume John sells each pizza at AUD 10.00.…

A: Price of milk=AUD 2 50 per litrePrice of Pizza=AUD 10.00 Let the quantity of milk be X and pizza be…

Q: You are a newspaper publisher. You are in the middle of a one-year factory rental contract that…

A: Given, Factory rent - $500,000/month Salary       - $1,250,000/month Marginal printing cost =…

Q: Janet spends $20,000 per year on painting supplies and storage space. She recently received two job…

A: Given  Cost of supply of painting and storage space = $20,000 Janet sells 25 painting per year and…

Q: ncreasing marginal returns occur Select one: a. As output increases at low levels of production b.…

A: Marginal returns refers to the change in the total output when an additional variable factor of…

Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…

A: Accounting profit does not take into account the opportunity cost. Accounting Profit = Total Revenue…

Q: 10. All-Leather is a leather tanning company in Chicago. Its total cost function is C(QA) = 130 +…

A: C(QA)=130+6QA+2QA2

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: Economic profit means the deduction of total revenue from the total cost. It includes both implicit…

Q: 1. A profit-maximizing firm you work for is currently producing 2000 units of output per month. The…

A: In a perfectly competitive market, there are large number of buyers and sellers trading a…

Q: Suppose that a firm produces 100 units a month and sells them all for $5 each. The explict costs of…

A: Here, given information is, Output produced: 100 units Selling price: $5 each Explicit cost: $200…

Q: Management believes it can sell a new product for $8.50. The fixed costs of production are…

A: As per the guidelines, we only answer one question at a time. So, I am answering the first one.…

Q: Amal quits his job and gives up a salary of $50,000 per year to start software company. During…

A: Economic Profit = Revenue- Cost = 300000-250000 =50000

Q: Table 1A: Costs and Total Production for a Competitive Firm Total Total Total Total Marginal Average…

A: Total cost is the sum of Fixed and variable cost. Marginal cost refers to change in total cost or…

Q: Suppose that you are a cattle rancher. You are deciding when to take your cattle to market to sell.…

A: Profit = TR - TC Profit = (P x Q) - TC let t = number of months

Q: You own an apartment building with 25 rental units renting at current market rate for $2500 a month…

A: Total revenue = price*quantity

Q: A business has the following costs: Rent: (none, the owner owns the building. Similar stores rent…

A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all…

Q: with or without irrigation. In western Kansas, corn can be grown in two ways Dryland farmers, who do…

A: "With many producers/sellers, the price charged is equal to the lowest/minimum of the long run…

Q: During the month of July, your company makes $12,000 in total sales. Supplies cost you $3,000, and…

A: Answer: Given, Total revenue from sales = $12,000 Total explicit cost = Cost of supplies + Payment…

Q: 1. Below is an annual income statement of Julian's Online Clothing Store. Julian is already working…

A: As per guidelines, we will answer the first question with three subpart question.

Q: Refer to the seenario below to answer the questions. Upon graduating with an accounting degree, you…

A: Annual economic cost = explicit cost + implicit cost = rent & supplies + salary given up =…

Q: If most firms in an industry are earning a 7 percent rate of return on their assets, but your…

A: The economic profit is the difference between revenue and total cost. Here total cost includes…

Q: In calculating economic profits, one needs to account for either implicit or explicit costs.   only…

A: Explicit costs are the actual out of the pocket expenditures of the firm to purchase or hire the…

Q: 1. Shelby is an entrepreneur who has decided to open a small advertising firm. She rents office…

A: Given: Rental space=$25000 Salary=$30000 Annual utility= $20000 Alternative of salary…

Q: 6 If a company’s total revenue is $1,744,322, their explicit costs are $863,214, and their…

A: "When firms produce commodities or services they get revenue from sales of their products but they…

Q: Tom runs a shoe-shine stand at the airport. Tom has no skills, no job experience, and no alternative…

A: Explicit cost is the direct out of pocket expense for a firm for example wages and salaries, rent,…

Q: The sole proprietor of the "Books and More" bookstore receives all accounting profits earned by her…

A: The firms and businesses operate in the market with the motive of earning high level of profits, and…

Q: year, and the other was for $90,000. However, she turned both jobs down to continue a painting…

A: here we calculate the accounting profits and economic profits by following method

Q: An individual leaves a college faculty, where she was earning $70,000 a year, to begin a new…

A: The accounting profit will be? Explanation : Add all the costs of her business which include office…

Q: There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a…

A: Given data: Total purely competitive farms is 300 Out of 300, 298 generates a profit of $24 for…

Q: Corinne is offered a job with a salary of $70,000, which she turns down to start her own business.…

A: The economic profit accounts for the implicit and explicit costs that are incurred by the individual…

Q: There are 300 farms in the perfectly competitive local dairy market. Of the 300 dairy farms, 298…

A: Perfect competition refers to a theoretical market structure.Monopolies do not exist in a perfect…

Q: During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor…

A: Hey, thank you for the question, since there is multiple question posted, according to our policy we…

Q: A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in…

A: a) Rate of return is given as = (Amount received/ amount invested)*100 = (15/150)*100 =10% Hence…

Q: You are given the following cost data. You can’t produce fractions of a unit. Q 0 1 2 3 4 5 6 TFC 12…

A: Price: It refers to the cost of goods and services that market charge from the people. The cost of…