Q: Explain by giving example the meaning of Economic profit
A: Economic profit refers to the difference between the revenue received through sales of a product and…
Q: economic profit serves as a beacon to entrepreneurs. This means
A: Q1 it is true, economic profits serves as beacon to entrepreneur If there is positive profit then…
Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…
A: The difference between the money collected from the sale of a product and the costs of the inputs…
Q: Explain how short-run economic profits become long-run economic costs. When profits fall to zero,…
A: A stopwatch or a calendar cannot correctly identify the boundary between the short and long runs. It…
Q: i just need a short answer like an examples please . .. Use an appropriate example from your…
A: Accounting profit takes into account only explicit cost while economic profit takes implicit cost as…
Q: Which of the following profits represent economic profit? Choose all that apply. a. A restaurant…
A: Accounting profit is the net income for a company, which is revenue minus explicit costs(out of the…
Q: what is the profit or loss at the profit maximizing output?
A: Profit maximizing level is where MC= MR. This is at P= $40 and Q= 200. Given ATC is less than…
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: 7. Suppose a Professor leaves his job at a university to open his own consulting firm. As a…
A: According to the given information, Implicit cost for Professor is $80,000 Explicit cost for…
Q: 1. What is profit? What is the difference between accounting profit and economic profit? 2. What is…
A: In a financial year, each firm /industry earns some revenue. Profit is the amount remaining from the…
Q: 4. Which of the following is considered when calculating economic profit but not accounting profit?…
A: Cost is the amount incurred by the producer or manufacturer for the production of goods and…
Q: Description Given the following graph, please label the curves where asked and answer the…
A: Here ,we have to find profit - maximizing level of output.
Q: Caroline opens a lemonade stand for two hours. She spends $15 for ingredients and sells $50 worth…
A: In economics, the cost is divided into two types such that implicit and explicit according to which…
Q: Explain the concepts of revene, costs, and profit
A: Production is the process of merging numerous material and immaterial inputs (plans, know-how) to…
Q: c. Find the profit and the instantaneous rate of change of profit at a production level of 800 car…
A: Profit is said to be the revenue generated by a firm over its cost, which can be calculated using…
Q: Explain the difference between economic profit and accounting profit.
A: Economic Profit: In economic profit explicit cost is subtracted from revenue. It also include…
Q: With the help of an example explain the difference between accounting and economic profit. Building…
A: The term perfect t competition refers to a theoretical market structure. during a perfect…
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: Graph Analysis: Use the graph below for the following questions... MC ATC AVC D-MR AR $10 $8 $7 $6…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: A Explain by giving example the meaning of Economic profit B) meaning of law diminishing…
A: A firm can earn economic profit depending on the type of market it operates and the prevalence of…
Q: Question 6.6. A firm should increase the quantity of output as long as its marginal revenue is…
A: In a firm, there are several costs and revenues related to the accounting procedure. The marginal…
Q: Tony is a wheat farmer, but he spends part of his day teaching guitar lessons. He has more students…
A: Economic profit is the difference between total revenue and the sum of explicit and implicit cost.
Q: 1.Describe the profit maximising rule.
A: Marginal Cost(MC) is the additional expenditure incurred on the production of additional unit of…
Q: Using price (P), quantity (q), and average total cost (ATC), define profit rate (per unit profit),…
A: We all know that the formula for average total cost is:- The ratio of total cost and quantity which…
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: Marginal Quantity Fixed Product Labor Variable Total Cost Marginal Cost Average Total Average…
A: 3). Total cost(TC) is the summation of fixed cost and the variable cost. Hence, for finding out the…
Q: In order to maximize the profit, what decision do you think is the most important one?
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: A firm is earning an accounting profit of $5,000. Its implicit costs are $3,000, explicit costs are…
A: Accounting profit = Total revenue - Explicit cost Economic profit = Total revenue - Explicit cost -…
Q: Suppose that a small hair styling salon had revenues of $200,000 in a given year. The owner spent…
A: The economic profit is broader term and it considers the opportunity cost as well.
Q: 1. Complete the Table 1 (below) by calculating: Marginal Cost (Column I: Total Revenue (Column V:…
A:
Q: Define and explain the differences between accounting profit and economic profit
A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…
Q: To compute Economic Profits, which costs are used? Illustrate
A: The term ‘Economic Profit’ of a firm or an organization refers to the difference between the revenue…
Q: Farmer Jones grows oranges. The total revenue, marginal revenue, total cost, and marginal cost of…
A: Answer: Let us first calculate the profit to find the maximum profit. Output (Crates in 1000s)…
Q: 1. When the business produce products at break-even point, it is said to be A. A loss for the…
A: Business: A business is characterized as an association or ambitious element occupied with business,…
Q: Explain how to determine a firm's cost of production and economic profit
A: Production Cost:- Manufacturing expenses are the expenses incurred by a firm when it manufactures an…
Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for…
A: Marginal revenue is defined as an increase in revenue value as a result of the sale of a new…
Q: (Figure: Determining Profit) Given the price of A, economic profit can be illustrated by which…
A: Answer - (B) ACDF
Q: Explain the dynamic theory of profit.
A: J.B. Clark proposed Clark's Dynamic Theory of Profit, which stated that profits develop in a dynamic…
Q: Please explain the following i. Differentiate between Accounting Profit and Economic Profit ii.…
A: Profit is simply excess revenue over cost. Profit = Total revenue - total cost It is primarily of…
Q: (b) Suppose that the price at which Sophie can sell readymade dress is $25 per dress: i. In the…
A: Shutdown point for a firm corresponds to the production point where the average revenue from…
Q: Bonnie decides to open a company and earns JD50,000 in accounting profit the first year. When…
A: Implicit costs are those costs which are not visible or tangible but incurred in process of…
Question 1.B
Explain by giving example the meaning of Economic profit
Step by step
Solved in 2 steps with 1 images
- Use Table A below and calculate ATC, Profit, marginal revenue and marginal cost at each quantity of output - keep your calculation for follow up questions: Q P TR TC ATC Profit MR MC 0 $1,900 $0 $1,000 1 $1,700 $1,700 $2,000 2 $1,650 $3,300 $2,800 3 $1,600 $4,800 $3,500 4 $1,550 $6,200 $4,000 5 $1,500 $7,500 $4,500 6 $1,450 $8,700 $5,200 7 $1,400 $9,800 $6,000 8 $1,350 $10,800 $7,000 9 $1,300 $11,700 $9,000 a. Q P TR TC ATC Profit MR MC 0 $1,900 $0 $1,000 $0 -$1000 $0 $0 1 $1,700 $1,700 $2,000 $2,000 -$300 $1,700 $1,000 2 $1,650 $3,300 $2,800 $1,400 $500 $1,600 $800 3 $1,600 $4,800 $3,500 $1,166.66 $1,300…Use Table A below and calculate ATC, Profit, marginal revenue and marginal cost at each quantity of output - keep your calculation for follow up questions: Q P TR TC ATC Profit MR MC 0 $1,900 $0 $1,000 1 $1,700 $1,700 $2,000 2 $1,650 $3,300 $2,800 3 $1,600 $4,800 $3,500 4 $1,550 $6,200 $4,000 5 $1,500 $7,500 $4,500 6 $1,450 $8,700 $5,200 7 $1,400 $9,800 $6,000 8 $1,350 $10,800 $7,000 9 $1,300 $11,700 $9,000 a. Q P TR TC ATC Profit MR MC 0 $1,900 $0 $1,000 $0 -$1000 $0 $0 1 $1,700 $1,700 $2,000 $2,000 -$300 $1,700 $1,000 2 $1,650 $3,300 $2,800 $1,400 $500 $1,600 $800 3 $1,600 $4,800 $3,500 $1,166.66 $1,300…Explain how to determine a firm's cost of production and economic profit
- Description Given the following graph, please label the curves where asked and answer the questions appearing below the graph. a. What is the profit-maximizing level of output? b. What is the significance of 8.5 units of output?Tony is a wheat farmer, but he spends part of his day teaching guitar lessons. He has more students requesting lessons than he has time to teach and still maintain his farm. Tony charges $25/hr for guitar lessons. One spring day he spends 10 hours in his field planting $130 worth of seeds, which he expects will produce $300 worth of wheat. What will Tony’s economic profit equal?Can you explain the ( Compare the values ) part and how Q = 6.5 is profit maximized?
