Gomez runs a small pottery firm. He hires one helper at $11,500 per year, pays annual rent of $7,000 for his shop, and spends per year on materials. He has $40.000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could e $6.500 per year if alternatively invested. He has been offered $22,000 per year to work as a potter for a competitor. He estim entrepreneurial talents are worth $4,500 per year. Total annual revenue from pottery sales is $80,000. Instructions: Enter your answers as whole numbers. a. Calculate the accounting profit for Gomez's pottery firm. b Now calculate Gomez's economic profit
Q: Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5000…
A: Explicit costs are the expenditures incurred by an individual or a business out of its own pockets.…
Q: nestion # 1: (20) (a) Suppose a Firm produce output using the production function Q-5KL. Wage rate…
A: a) Production Function of the firm; Q= 5KL .......... equation 1 Wage rate for hiring…
Q: Number Of Output Workers 1 50 2. 110 3. 300 4 450 590 665 700 725 710 10 705 According to the above…
A: Diminishing returns is that point where Marginal output start decline as input level increases…
Q: By completing this table, diminishing returns appear after employing the worker number - 1…
A: The average product is the per unit product. This is calculated by dividing the total output by the…
Q: Suppose a firm is producing 100 units of output, incurring a total cost of $10 000 and total…
A: Cost refers to the all expenditure or expenses that is incur in an production process. It includes…
Q: Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000…
A: Economic Profit = Total Revenue - Total Explicit Cost - Total Implicit Costs Accounting Profit =…
Q: In Carsland which industry is labor-intensive and why? Compare the ratio of labor to capital…
A: In an economy, industries are compare on the basis of their input resources and accordingly make…
Q: The table shows how the output of wool fabric varies with the number of workers employed in a…
A: Diminishing marginal returns means when increases one unit of factor of Production keeps other…
Q: 19. Odette has a base monthly salary of S1,500 and earns a 5% commission on all sales she makes at…
A: Odette's monthly base salary is $1500 The commission per sale =5% Last month salary = $7500 We have…
Q: Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s…
A: Given, In the coffee shop, there are 3 workers and 1 coffee machine. If there is an increasing…
Q: Assume that in a typical construction job 35% of the work is done by common labor and 65% is done by…
A: Given : Work done by common labour = 35% Work done by skilled labour=65% Common Labour Index=24254…
Q: Calculate the accounting profit and the economic profit for Gomez’s pottery firm
A: Accounting profit is a profit which simply subtracts the explicit costs from the total revenue. The…
Q: MCQ 36 The marginal productivity theory of factor pricing suggests that a firm should hire…
A: Marginal product of capital refers to the increase in output by hiring an additional unit of…
Q: Arnie Armstrong has been with Pierce Auto Parts Manufacturing Company for 23 years. Recently, he was…
A: Ethical type Economy portrays the hypothesis of the Ethical preconditions of the economy and of…
Q: Recently, the owner of KFC Franchise decided to change how she compensated her top manager. Last…
A:
Q: Alyssa runs a "Dessert of the month" delivery service. To operate her business each year, she spends…
A: Explicit costs are the expenditures incurred by an individual or a business out of its own pockets.…
Q: 13) Consider a technology exhibiting diminishing MRTS. If capital is fixed, but a firm varies labor…
A: Answer: Diminishing MRTS: Marginal rate of technical substitution refers to the change in capital…
Q: As a firm hires more labor in the short run, the O extra output of an additional worker may rise at…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s…
A: When the variable factors of production-those whose count can be increased or decreased are employed…
Q: A jeweler has hired a craftsman to make handmade jewelry. All items produced are identical, but the…
A: Labor refers to the amount of work exerted by the people to produce the final goods and services.…
Q: 14 When Total Product of labors (TPL) is maximized then: A. Marginal product (MPL) is maximized B.…
A: Total product in economics refers to the level of output that is produced with the help of given…
Q: Alyssa runs a "Dessert of the month" delivery service. To operate her business each year, she spends…
A: Explicit cost = 30,000+50,000+5000 = 85,000 Implicit cost = 50,000+15,000+2000 = 67,000
Q: Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000…
A: Accounting profit likewise alluded to as accounting profit or monetary profit, is net gain acquired…
Q: Explain what is meant by working capital management and discuss the importance of working capital…
A: 1. Working capital management is a business approach for ensuring that a firm functions efficiently…
Q: Number of Workers Number of Chairs 1 10 2 18 3 24 4 28 5 30 6 28 7 25 a. Calculate the average and…
A: The average product of labor is derived by dividing the total product by the inputs. It is also…
Q: Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500…
A: An individual or a firm runs a business with the primary motive of earning profit. Profit is the…
Q: The table shows the daily production of Papaya Co., that supplies papayas to hotels and restaurants…
A: MP(marginal product) is the change in TP(total product) when an extra unit of labor is employed.…
Q: QUESTION 4 When Total Product of labors (TPL) is maximized then: O Average product (APL) equals zero…
A: Total product of labor:- The TPL curve depicts how much productivity a company can generate using a…
Q: Table 1 - Labor and output data Units of Labor Units of Output 0 0 1 15 2 38 3 62 4 75…
A: Units of Labor Total Output Marginal Output 0 0 - 1 15 15 2 38 23 3 62 24 4 75 13…
Q: Which of the following is true of effective employee evaluation and feedback? O It should be…
A: When we are considering the evaluation of employees then it is very necessary to evaluate the…
Q: Gomez runs a small pottery firm. He hires one helper at $16,500 per year, pays annual rent of $6,000…
A: Accouting profits are profits ascertained by comparing both revenue and cash expenses (also called…
Q: Sam decides to quit his job as a corporate accountant, which pays $11,000 a month, and goes into…
A: Accounting profit is the profit which is known as net income which is earned after the reducing all…
Q: Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000…
A: "Accounting profit is obtained by deducting explicit costs (these costs represent the expenses of…
Q: Workers Pizza Fixed cost in $ per day per day Variable cost in S TC per day 400 per day [25 (75 400…
A: Marginal cost is the change in total cost per unit change in output. It is calculated by taking the…
Q: Refer to the information provided in Table 16.1 below to answer the question(s) that follow. Refer…
A: Here, the given table shows the combination of labor and capital used to generate output at…
Q: TOTAL PROFITS at the profit maximizing level of production is: 315 O 180 450 O 135
A: Answer: d (135) Explanation: Profit=Price-ATC×Quantity At equilibrium (P=MC), the price is $10 and…
Q: Refer to the data provided in Table 10.1 below to answer the following question(s). Table 10.1 Total…
A: As per given table, At profit maximizing point, Marginal product value = Marginal labour cost
Q: Economic profits differ from accounting profits because O a all of the mentioned Ob. the former is…
A: Economic and accounting profits differ due to the concept of accrual of cost.
Q: Ronald runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of…
A: Economic profit is cash procured subsequent to considering express and understood costs. Accounting…
Q: Gertrude quit her $40,000- per- year job to start her own own consulting firm. She withdrew her…
A: Implicit cost is the next best alternative forgone to start the business Implicit cost = job loss +…
Q: A certain firm produces and sells staplers. Last year, it produced 5,000 staplers and sold each…
A: Given information: A firm produces and sells staplers. 5000 staplers are produced and sold at $10…
Q: Consider this production function. Study hours 1. 21 3 4. 10 11 12 13 14 15 or more 6 8. 6. Grade o…
A: Average Product is the total product per unit of output. Marginal Product is the additional amount…
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: Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of $600,000.…
A: Given information: Yearly Revenue =$600,000 Expenses on purchasing of goods = $230,000 Revenue from…
Q: Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000…
A: Explicit cost is the actual monetary expense. Implicit cost is the opportunity cost of doing an…
Q: if marginal product is given by 50Q - 5Q2 find the value of Q where marginal product is at its…
A: Answer to the question is as follows:
Q: Situation 21-4 Joe is the owner-operator of Joe's Haircuts Unlimited. Last year he earned $200,000…
A: The implicit cost means cost which is not expressed directly. It is also called the opportunity…
Q: Labor Output Fixed Cost Variable Cost (Number of workers) (Units) (Dollars) (Dollars) 30 1 100 30 15…
A: Fixed costs are defined as those costs which do not change due to the change in the ouput. These…
Q: Mr. R is working from7:30 AM to 3:30PM including lunch break for 5 days every week in jewelry design…
A: [Since more than 1 question are posted, only 1st one is answered as per answering policy]…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Andie is considering leaving her job as attorney to pursue her passion by starting a dog grooming business. She currently takes home $6000 per month from her job. She pays $2000 per month to rent her house . if she were to start the dog grooming business, she would operate it out of the currently unused room at the back of her house and she would work at it fulltime. She would hire additional workers and pay them a total of$3000 per month , while spending $1000 per month on materials . she already has everything else she needs to start the business. What are the monthly economic costs of Andies potential dog grooming business.Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4,000 per year if alternatively invested. He has been offered $15,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,000 per year. Total annual revenue from pottery sales is $72,000. Calculate the accounting profit and the economic profit for Gomez’s pottery firm.Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him$4,000 per year if alternatively invested. He has been offered $15,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,000 per year. Total annual revenue from pottery sales is $72,000. Calculate the accounting profit and the economic profit for Gomez’s pottery firm. A. How much is the normal profit? (Use a whole number, no currency, no comma, no space
- Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him$4,000 per year if alternatively invested. He has been offered $15,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,000 per year. Total annual revenue from pottery sales is $72,000. Calculate the accounting profit and the economic profit for Gomez’s pottery firm. a. How much is the accounting profit? (Use a whole number, no currency, no comma, no space) b. How much is the normal profit? (Use a whole number, no currency, no comma, no space) c. How much is the total explicit cost? (Use a whole number, no currency, no comma, no space) d. How much is the total implicit cost? (Use a whole number, no currency, no comma, no space) e. How much is the economic profit? (Use a…A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays \$20,000 a year, and move into a storage building that he owns and currently rents to his brother for $6,000 a year. His estimated expenses at the sushi bar would be $50,000 for food and \$2,000 for and electricityThe chef's implicit costs are equalSusan Jones has a job as a pharmacist earning $45,000 per year, and she is deciding whether to take another job as the manager of another pharmacy for $55,000 per year or to purchase a pharmacy that generates revenue of $350,000 per year. To purchase the pharmacy, Susan would have to use her $20,000 savings and borrow another $90,000 at an interest rate of 8% per year. The pharmacy that Susan is contemplating purchasing has additional expenses of $100,000 for prescription and non-prescription drugs and lines of women’s and men’s personal hygiene products and cosmetics; $45,000 for one full time person; $20,000 for one part time person; $12,000 for rent; $2,500 for electricity; $1,300 for natural gas; $1,200 for telecommunications; and depreciation and amortization expenses are $5,500. Assume that income and business taxes are 35% and the repayment of the principal of the loan does not start before three years. Also assume that revenue is expected to grow at 5% per year and expenses at…
- Sandra lives in Melbourne and runs a business that sells guitars. In an average year, she receives $2.6 millionfrom sales of guitars. Of this sales revenue, she must pay the manufacturer a wholesale cost of $1,400,000. She also pays wages and utility bills totalling $1,100,000. If she does not operate this guitar business, she can work in an accounting firm and receive an annual salary of $70,000. She owns her showroom. If she chooses to rent it out, she will receive $50,000 in rent per year. Assume that the value of this showroom does not depreciate during the year. No other costs are incurred in running this guitar business. What is Sandra’s accounting profit (used for tax purposes)? What is her economic profit?Barney decides to quit his job as a corporate accountant, which pays $14,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $320 a month if he wasn’t using it as a home office. He must purchase office supplies worth $70 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $16,000 per month. Instructions: Enter your answers as a whole number. a. What are Barney’s monthly explicit costs? $ b. What are Barney’s monthly implicit costs? $ c. What are Barney’s monthly economic costs? [i need a,b,c answer i will 5 upvotes]Suppose you manage a business that produces high-end dog food. The business produces 3,000 dog food cans per day, and can sell each can at $2.00/can regardless of how much is produced. Your firm currently employs 20 workers, each of whom earns $15/hour and work 8 hours per day. Inputs, like the meat for the food and the metal for the can, cost $1.00/can. Your overhead expenses, including rent, property taxes, insurance, etc., which does not vary with the number of cans produced, equals $250 per day. a. (3) Calculate your company’s current daily profit. You’re considering whether to hire additional workers to produce additional cans. Each worker would be paid $15/hr. and material costs remain constant at $1.00/can. You estimate the 21st employee would produce an additional 200 cans per day, and the number of additional cans from each additional worker would be decreasing by 40 (a 22nd employee could produce an additional 160 cans per day, a 23rd employee could produce an additional…
- Barney decides to quit his job as a corporate accountant, which pays $15,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $315 a month if he wasn’t using it as a home office. He must purchase office supplies worth $60 a month, and his monthly electricity bill has increased by $40 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $17,000 per month. Instructions: Enter your answers as a whole number. a. What are Barney’s average monthly accounting profits? $ b. What are Barney’s average monthly economic profits? $Sam decides to quit his job as a corporate accountant, which pays $11,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $305 a month if he wasn’t using it as a home office. He must purchase office supplies worth $70 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. After six months of working from home, Sam has earned an average of $13,000 per month. a. What are Sam’s average monthly accounting profits? $ b. What are Sam's average monthly economic profits? $Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $315 a month if he wasn’t using it as a home office. He must purchase office supplies worth $85 a month, and his monthly electricity bill has increased by $40 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $17,000 per month. Instructions: Enter your answers as a whole number. a. What are Barney’s monthly explicit costs? $ b. What are Barney’s monthly implicit costs? $ c. What are Barney’s monthly economic costs? $