Here are three fictional restaurants and their costs and revenues during March of 2020: Restaurant Fixed Costs Variable Costs Pandemic Revenues The Peach Pit 110,000 85,000 80,000 Gus' Galaxy Grill 75,000 75,000 100,000 Paddy's Irish Pub 50,000 70,000 95,000 a) For each restaurant, calculate their profits during this difficult month. b) Which restaurant, if any, earned a profit? c) Which restaurants were able to remain in business in the short run? Which were forced to shut down entirely? Why?

Here are three fictional restaurants and their costs and revenues during March of 2020: Restaurant Fixed Costs Variable Costs Pandemic Revenues The Peach Pit 110,000 85,000 80,000 Gus' Galaxy Grill 75,000 75,000 100,000 Paddy's Irish Pub 50,000 70,000 95,000 a) For each restaurant, calculate their profits during this difficult month. b) Which restaurant, if any, earned a profit? c) Which restaurants were able to remain in business in the short run? Which were forced to shut down entirely? Why?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 39P: A firm is considering an investment that will earn a 6 rate of return. If it were to borrow the...

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Set all variables to their baseline values.9) At what level of output is average cost a minimum?10) What is average cost (AC) at that output?11) What is marginal cost (MC) at that output? BASELINE COSTS TC (BASE) $175,113 AC (BASE) $43.78 MC (BASE) $64.12 NEW COSTS TC (NEW) $175,113 AC (NEW) $43.78 MC (NEW) $64.12 POLICY VARIABLES Output 4,000 Fixed cost 25,000 Tax per unit $0.00 AC(NEW)-MC(NEW) -$20.34
Economic Mathematics Consider the problem of inventory costs and production to satisfy a demand x for a certain product. The data is as follows: Delivery period T = 8Starting inventory x (0) = 0Ending inventory x (8) = 144Inventory cost CI (x (t)) = 7x (t)Production flow cost Cp = 3.5x'2 (t)1. Write the problem of minimizing total costs over time 2. Check the second order conditions for minimization3. Raise the Euler equation and the differential equation to solve4. Find the paths of inventory, production and total costs5. Graph the inventory and production lanes (use 0.5 increments over time)
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Table: Spring Water Quantity(Cases) Price TotalRevenue MarginalRevenue MarginalCost AverageTotalCost Total Cost 0 $16 $0 $25 $15 $10 1 $15 $15 35.00 $35 $13 $6 2 $14 $28 20.50 $41 $11 $4 3 $13 $39 15.00 $45 $9 $2 4 $12 $48 11.75 $47 $7 $3 5 $11 $55 10.00 $50 $5 $3 6 $10 $60 8.83 $53 $3 $5 7 $9 $63 8.29 $58 $1 $9 8 $8 $64 8.38 $67 Reference: Ref 15-12 Table: Spring Water Table: Spring Water. The table shows the demand and cost data for a firm in a monopolistically competitive industry producing drinking water from underground springs. The profit-maximizing output is _____ cases. Select one: a. 7 b. 5 c. 6 d. 8

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Restaurant	Fixed Costs	Variable Costs	Pandemic Revenues
The Peach Pit	110,000	85,000	80,000
Gus' Galaxy Grill	75,000	75,000	100,000
Paddy's Irish Pub	50,000	70,000	95,000