How can we Determine Accounting Profit?

Q: If a firm has an accounting profit it must have an economic profit. O True

A: Profit = total revenue - total cost

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

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: Explain using examples the difference between implicit and explicit costs

A: Cost refers to the sum of money a corporation spends on making or producing products or services.…

Q: The equilibrium rent on office space has just increased by $500/month. Compare the effects on…

A: The profit is the excess revenue made by the firm which can be calculated after deducting the cost…

Q: A producer borrows money and starts a business. He himself looks after the business. Identify…

A: (Q) A producer borrows money and starts a business. He himself looks after the business. Identify…

Q: The value of marginal revenue is $35 and the value of marginal cost is $30 Is the firm maximizing…

A: # The values of marginal revenue and the marginal cost helps us gain the idea whether the firm is…

Q: What is the relationship between revenue cost and profit?

A:

Q: What is the cost revenue? Explain with example?

A: Cost revenue is the total expenditure of producing and delivering a product or service to customers.…

Q: Which software should you purchase in order to save money in the long run, X or M? Not Satisfied…

A: Given:- Two Softwares X and M with their values being $6000 and $12000. To determine:- which…

Q: What is the relationship between a firm’s total revenue, profit, and total cost?

A: Total revenue (TR) is the amount earned by the firm by selling its goods. Total Cost (TC) is the…

Q: Draw tfc, tvc, tc and marginal cost curve on the same graph.

A: To draw the graph of TC, TVC, TFC and MC random data have been taken.

Q: If marginal profit is negative what information can you infer about marginal cost and marginal…

A: Marginal profit is given as :- Marginal profit = Marginal revenue - Marginal cost It's given that…

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: Define the term cost of revenue?

A: Revenue is defined as the amount of money or income generated by a firm for a given period of time.…

Q: Draw the cost-volume-profit diagram?

A: The cost-volume-profit analysis implies the relationship between costs and volume, selling price,…

Q: what tools and techniques are available to improve a firm's profits?

A: There are many tools and techniques available which is used by the firm to improve profit.Following…

Q: Use your own example to clearly differentiate between an "accounting profit" and an "economic…

A: When talking about the difference between economic and accounting profit, it can be said that…

Q: Marginal revenue must exceed marginal cost.Explain why?

A: Total revenue is the total receipts collected from the sale of goods or services in the market. The…

Q: What is average profit margin means?

A: Profit margin is calculated by dividing income by sales to determine how profitable a firm or…

Q: 1) Looking back at the TFC (total fixed costs) what would the graph look like? (upward, downward,…

A: TFC is the total fixed cost which means all the cost which includes the fixed payments irrespective…

Q: How do you derive the marginal cost (MC) curve of a firm? Explain.     Answer question step by…

A: The total cost of a firm is the cost of producing the products which is the sum of total fixed and…

Q: What is meant by normal profit?

A: The total revenue earned by a firm operating in a market is the sum of payments received from the…

Q: What is the firms profit or loss?

A: Since the marginal revenue of the firm is above the average total cost and the marginal cost the…

Q: Consider this statement: “A firm should increaseoutput when it makes a profit.” Do you agree…

A: In a market, a firm analyses its output decision by comparing the marginal revenue and marginal cost…

Q: How do we measure the Profit Margin on Sales?

A: Profit margin is a type of profitability ratio that represents the percentage of sales that have…

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: 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: An air conditioner outlet finds that if it sells x air conditioners per month, its costs will be C…

A: All the parts have been solved below.

Q: explain what is meant by explicit; implicit; and sunk costs. How are they used to calculate…

A: All the costs that are linked or incurred to the business activities of a company and are easily…

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: How to Determine "Accounting Profit"

A: Accounting profit refers to the net operating income, which comes after deducting cost of land, cost…

Q: What is Product Expansion?

A: Product Expansion -It is the expansion of economic activity as well as the production levels from…

Q: Why is a normal profit considered an economic cost?

A: Why is a normal profit considered an economic cost?  Normal profit is an economic term, refers to a…

Q: A firm TC = 120 + 50g - 10q? + q* Find the equations for a) Total Variable Cost b) Average Variable…

A: Question Two: TC = 120 + 50q - 10q2 + q3 (A) Variable cost is that part of TC which depends on…

Q: How profit is different from the incorporating normal profit and when the normal profit is into…

A:

Q: How do you calculate a firm's total cost and total revenue?

A: Total cost (TC) refers to the cost of all inputs needed to produce with the given unit of output. It…

Q: Explain average fixed cost (AFC)?

A: Costs are the sums of money spent by producers on various variables of production in order to…

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: To compute economic profits, which costs are used?

A: The economic profits of a firm could be estimated by the difference between total revenue and total…

Q: When a firm takes the short-down decision?

A: Shut down is a situation when it is better for the firm not to produce instead of producing.

Q: How do you derive the marginal cost (MC) curve of a firm? Explain.    use graph.

A: The marginal cost represents the change in the total cost of production that results in one new unit…