During the recent auto sales slump, GM, Ford, and Chrysler decided it was cheaper to sell cars to rental companies at a loss than to lay off workers. That’s because closing and reopening plants is expensive, partly because the auto makers’ current union contracts obligate them to pay many workers even if they’re not working. When the article discusses selling cars “at a loss,” is it referring to accounting profit or economic profit? How will the two differ in this case? Explain briefly.

Q: Graphically show the relationship between the total fixed cost, the total variable cost, and the…

A: Total Cost = Total Fixed Cost + Total Variable Cost

Q: Briefly explain what is meant by: 1) account profit; 2) economic profit; and 3) zero economic…

A: 1. Accounting Profit: The accounting profit refers to the profit that comes after subtracting the…

Q: Suppose that a small family farm sold its output for $110,000 in a given year. The family spent…

A: Total Revenue= $110000 Money spent on fuel= $20000 Money spent on seed, fertilizers, and pesticides=…

Q: How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller…

A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…

Q: What is the difference between Economic Profit and Accounting profit?

A: Explicit Cost is the cost paid to factors of production that are hired from outsiders. Implicit Cost…

Q: Briefly describe the flow of costs in a manufacturing company?

A: Cost flow refers to how or the direction by which costs pass through a organization. Usually, the…

Q: In recent years, the United States has experienced large increases in oil production due in large…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Although Goldman Sachs paid Heather $100,000.00 per year, she was not satisfied with her job. She…

A: Given:- Amount Heather get from her job= $100000 per yearAmount she borrowed from bank=…

Q: Suppose Honda's total cost of producing 4cars is $225000and its total cost of producing 5cars is…

A: Given, Total cost of producing 4 cars = $225000 Total cost of producing 5 cars = $ 250000

Q: What is fixed cost? How would you calculate Fixed cost in a graph

A: Total Cost has two components in the short run  1)Total Fixed Cost and 2)Total Variable Cost . Each…

Q: Imagine that you own your own business, or you are the manager of a company. Please provide an…

A: Sunk cost is a cost that has been paid and cannot be recovered in the future.

Q: Question: Looking at the average total cost data, at what level of output does the diminishing…

A: The spreading effect is the effect which the increasing output has on the average total cost. As the…

Q: 2.9 [Related to the Apply the Concept: “Fixed Costs in the Publishing Industry" D] A Federal Reserve…

A: Meaning of Cost: The term "cost" describes the circumstances in which a business incurs different…

Q: Consider the concepts of accounting profit and economic profit.  Suppose you are a consultant and…

A: Profit is the surplus value that is generated in a process of production, which usually accrues to…

Q: In 2009 General Motors (GM) announced that it would reduce employment by 21,000 workers. What does…

A: In microeconomics, the study of the resource market where the demand for the factor is a derived…

Q: Briefly explain the short run fixed costs and the variable cost in modern economics?

A: Short-run is the time period that is less than or equal to a year. The costs can be divided into two…

Q: The table below shows how the number of university classrooms cleaned in an evening varies with the…

A: Given:

Q: A train track runs through a rancher's land. Each time a train runs on the track, it causes one of…

A: *ANSWER :-

Q: Suppose a firm producing table lamps has the following​ costs: Quantity Average Total Cost ​1,000…

A: The evaluation of the discussion between Ben & Jerry can be done as understanding the fact that…

Q: Use the following table and use your previous calculations at what quantity of output does marginal…

A: Total cost is the sum of total fixed cost and total variable cost. Marginal cost is the addition to…

Q: Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she…

A: "Economic profit takes into account both explicit and implicit costs and is obtained by deducting…

Q: Georgia quit her old job where she had been earning $50,000 a year to start her own business. She…

A: Explicit cost: It is the actual monetary expenditure made during the operation of a business.…

Q: table below shows the cost of production for Coca-cola 200 ml. please answer the table and explain…

A: TC = FC + VC MC = change in TC ATC = TC / output AVC = VC / output

Q: 2. (Module 55) Use the information in the table below to answer the following questions. Average…

A: a) Total fixed cost = Average fixed cost / output.

Q: Can a firm earn an economic loss and an accounting profit at the same time?

A: The measure that depicts distribution of income to owner in a profitable process of production in…

Q: Many firms in the United States file for bankruptcy every year, yet they still continue operating.…

A: Filling for bankruptcy does not mean that the firms have to shut down. In the US the bankruptcy laws…

Q: What is the difference between economic profit and accounting profit?

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Briefly explain what is meant by the term "fixed costs" and provide three examples of same.  What…

A: A) The term fixed expense alludes to an expense that doesn't change with an increment or decline in…

Q: Superconductor technology is becoming a widespread and indispensible component of the machines we…

A: Given,  Superconductors play a vital role in the manufacturing of machines. They are found in each…

Q: Complete the sentences to illustrate how economists and accountants view profit differently.…

A: We have to find following given questions.

Q: provide an economic explanation for the provided text below  While on vacation, you go to a…

A: The total cost of the firm is divided between the fixed cost and the variable cost. The firm will…

Q: The following table shows the end of the year account entries of a small company Item Amount ($)…

A: Implicit costs are those costs which does not include any payment of money and includes the cost of…

Q: Complete the third column of the following table by calculating the marginal cost per dozen pizzas…

A: MC = TCn - TCn-1

Q: 3. Which of the following is NOT an example of a sunk cost? a) Purchase of a hamburger after…

A: As per our Honor code, we can solve only 1st question. If you want the answer for rest of the…

Q: Economic profit is:

A: Economists and Accountants measure profit differently.

Q: You are working for a company that does helicopter tours of the Grand Canyon. So far, you have…

A: (a) Initial total cost (TC1) = 500 By organising an additional tour, new average cost = 55 Hence,…

Q: How is it possible to have positive accounting profit and negative economic profit concurrently?

A: Answer: Let us first understand the difference between accounting profit and economic profit.…

Q: Briefly discuss average costs, including how they are calculated, how they are typically appear on a…

A: The various Average costs are discussed below including how they are calculated :