If a firm generates $200,000 in revenue, earns $105,000 in economic profit, and its expli- costs are $90,000, how much are its implicit costs? $105,000 $30,000 $90,000 $5,000
Q: more debt every year while its output is greater than potential output and its economic growth is…
A:
Q: A model of wages and prices is presented W, = a, +a,P, + a,Q̟ + u, P= Bo+ BW,+ B,Y, + u Where W is…
A: A multiple-equation model is a method of equations consisting of considerable equations, which…
Q: Consider two economies (indexed by i = 1, 2) described by Yi(t ) = Ki(t )θ and Ki(t ) = siYi(t ),…
A: (Q) Consider two economies (indexed by i = 1, 2) described by Yi(t ) = Ki(t )θ and Ki(t ) = siYi(t…
Q: explain how taxes and subsidies can be used to internalize externality. Next, give an example of the…
A: Tax is an obligatory instalment to the public authority by the pay gatherings. The subsidy is an…
Q: Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been…
A: "CPI is computed by multiplying 100 by the ratio of basket's cost in the particular year to the…
Q: Below are some data from the productions of milk and honey. a) Compute nominal GDP, real GDP, and…
A: The entire monetary worth of all of the final products and services produced within the geographical…
Q: Data from The Economist BigMac index from January 2022 shows that the local price of a Big Mac in…
A: Pound sterling price of a Big Mac in Buenos Aires = Price of a Big Mac in Buenos Aires / Exchange…
Q: 2.Distinguish the final goods or services, intermediate goods or services, and capital goods?
A: "In economics goods are of three types- final goods or services, intermediate goods or services, and…
Q: For each of the following situations, decide whether AlI has diminishing marginal utility and why.…
A: The law of diminishing marginal utility states that if other things are constant, the marginal…
Q: A: it is considered no fault coverage even if the insured is party responsible for loss B: it is…
A: The answer is - D. Workers' Comp Covers medical benefits at a limit of $1,000,000 per worker
Q: Suppose the federal tax on gasoline increased by 5 cents per gallon. Do you think that such an…
A: Charge is gathered from people and partnerships by the city, state, or nation where they dwell or…
Q: 5. The cross elasticity of demand for a substitute is ____________. Select one: a.equal to zero…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Discuss the importance and solutions to the limitations of the Mundell-Fleming Model.
A: An economic model that was first proposed (independently) by Robert Mundell and Marcus Fleming is…
Q: Rue's utility function is U(z, y) min{z, 3y}. Jules' utility function is U(z,y) min{z, y). (a) Which…
A: An indifference curve is a graphic presentation of integrated products that offer an identical type…
Q: Which of the following best describes a weak form of market efficiency? A. it reflects all public…
A: Market efficiency refers to the extent or degree to which market prices reflect all available and…
Q: 7. In seeking to show that population growth threatens to exhaust the world's agricultural…
A: There are three parts of population growth: births, passings, and movement. The adjustment of the…
Q: please do not give plagiarised answer make answer unique thnku in advance
A: The government is the institution that plays an important role in controlling economic growth. The…
Q: A producer of coffee mugs notes that the price of mugs has risen over each of the past three years.…
A: Supply is defined as to the amount of a commodity that manufacturers are willing to make and sell in…
Q: Suppose you are hired as an economic consultant for Promax Consulting Company. Your job is to…
A: The perfectly competitive firm, maximize its benefit when its minimal expense is equivalent to the…
Q: What would be the story to this question?
A: Effects of a shock involving a decrease in money supply can be well explained through the use IS-LM…
Q: A company is deciding whether to keep its presently owned vehicle for business purposes or purchase…
A: Given that, Cost of new car =$55,000Maintenance cost =$1400Salvage value =41% of the original…
Q: The following graph displays Bars indifference curves: Pepsi Coke a. What type of utility function…
A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only…
Q: What is the quantity supplied and demanded at P = 220? Excess supply or excess demand, which one…
A: Excess supply refers to a situation where the quantity supplied of a particular commodity is greater…
Q: A farmer can plant up to 8 acres of land with wheat and barley. He can earn $5,000 for every acre he…
A: Given:- x=number of acres of wheat y=number of acres of barley p=total profit that can be earned To…
Q: Which of the following is a potential operating instrument for the central bank? Question…
A: GDP is the market value of final goods and services by an economy during a given period of time.…
Q: Suppose the federal tax on gasoline increased by 5 cents per gallon. Do you think that such an…
A: Energy is the lifeblood of any economy, and gasoline is the most widely used fuel on the planet. It…
Q: Question A5 For a particular product, Marginal Cost (MC) = Q + 5. Find an expression for Total Cost…
A: "Marginal cost is addition to the total cost when more unit of output is produced and it is obtained…
Q: lustry demand is given by: p= 200 – q. – q2 where q and q2 are the outputs of Firm 1 and Firm 2…
A: Note: You have uploaded two questions, hence we shall answer the first one for you. If you seek…
Q: keep a Renewable Term policy active, the insured must do which of the following? A. Submit a renewal…
A: Renewalable term insurance can offer monetary insurances long before a significant individual…
Q: b) The consumer expenditure on automobiles in a particular developing country is estimated from a…
A: We have sample size n=14 <30, we have to use the student t-distribution. For given Econometric…
Q: If any of your answers are negative, put a minus sign in front of the number. You are given the…
A: We know , TC = TFC + TVC MC = TCn - TCn-1 TFC = AFC * Q TVC = AVC*Q TC = ATC*Q
Q: If output is $7500, the level of capital is 600, capital's share of total income is 0.6, and the…
A: The central idea of neoclassical distribution theory is that money is earned through the production…
Q: Suggest solutions to the limitations of the Efficiency Wage Model
A: The efficiency wage theory proposes that raising wages will enhance labour productivity because…
Q: 6. Find the amount at the end of 15 years if P 55 000 is invested at an interest rate of 5%…
A: PV = 55,000 r = 5% n = 10
Q: Explain how search frictions arise in the labour market.
A: The market where demand and supply of jobs tend to meet with workers that provide services that tend…
Q: Any risk-averse individual would always (Select all that applies) a) take a 30% chance at $100…
A: A risk-averse individual would always beleive in accepting low risk investment with low returns,…
Q: 2. A bridge connecting two towns costs $15,000,000, has an average annual operating cost of $450,000…
A: The measure that depicts the expected stream of income that is determined on the date of valuation…
Q: Five years ago a consulting engineer purchased a building for company offices constructed of bricks…
A: Future value (FV) is the value of an ongoing asset at a future date in light of an accepted pace of…
Q: however, option e mentions upward sloping straight line, did you simply mean upward sloping curve or…
A: The preferences of Goluki are determined by U(q1, q2) = q11/3 + q21/3 Where, q1 is the number of…
Q: Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some…
A: Given, Reserve Requirement Simple Money Multiplier Money Supply (Percent) (Dollars)…
Q: 5. Suppose Bard is its own marginal propensity to consume at Bard is 0.5. Autonomous consumption at…
A: Answer to the question is as follows:
Q: It asks for modified B/C ratio.
A: The formula for calculating an annual payout, A=Pi1+in1+in-1 Here, P is the present value, n…
Q: Which of the following is likely to have the largest effect on spending? O A. A change in expected…
A: People spend out of the income they have already earned . and spending influence the aggregate…
Q: What is the Fed Funds Rate? the interest rate the Fed pays on reserves stored in the federal funds…
A: The required reserve is the amount of cash banks must keep on hand at any given time.…
Q: For each of the following transactions, 1) determine whether it should be included in the…
A: Gross domestic product is the sum total of final values of services and goods produced in a year.
Q: Market for Clothing in CambodiaConsumer SurplusProducer SurplusPrice of ClothingQuantity of…
A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…
Q: 2. The Lorenz curve of a particular society is given by L(x) = Ax? + Bx. Suppose that the poorest…
A: 2) The Lorenz curve depicts how money (or wealth) is distributed throughout an economy.It was…
Q: Discuss the limitations of the use of the Gross Domestic Product(GDP) as a measurement of…
A: The total worth of products and services produced in an economy during a given time period is…
Q: U.S. firms would sometimes threaten their workers with moving their jobs to low- wage Mexico if they…
A: NAFTA was signed in 1994 with the goal of increasing commerce, removing obstacles, and lowering…
Q: Problem 8. Compute the future worth in year 10 at i= 12% per year for the cash flow shown below.
A: Given cashflows for 10 years Future worth of each cashflow = cashflow * (1 + rate)^time total future…
Answer quick...
Step by step
Solved in 2 steps
- A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.Suppose a food company has both food and store divisions. The food divisionproduces burgers that are sold downstream at the store. Assume that the storesells 1,000 burgers at $10, 2,000 burgers at $9, 3,000 at $8, and so on up to10,000 burgers at $1. The price the food division charges for a burger is$3.50. What will be the profit-maximizing price for the entire company? How muchprofit will the company make? What is the revenue-maximizing quantity for thestore?(a) Assume that although Marrow firm is presently making accounting profit it is experiencing negative economic profit in its current venture. The owner of the firm does not understand what this means and asks you to explain to him. (b) Massy super store, wishes to increase its total revenue. It offers 30%discount on every item it sells.Group A Group BVolume of sales before the 1.79 million 1.76 million 30% discount Volume of sales after the 1.84 million 1.86 million 30% discount(a) Using the midpoint method, calculate the price elasticities of demand for groupA and group B.(b) If Massy wants to increase its total revenue, which group should it offer the discount to?
- A man managing a restaurant for $20,000 per year decides to open his own diner. His revenue during the first year of operation is $110,000, and his expenses are as follows: Salaries, $55,000; Supplies $11,000; Rent, $9,000; and Utilities, $1,500. He financed the diner with a loan of $70,000 at a 5% interest rate. Calculate: a. explicit costs b. implicit costs c. business profit d. economic profitYour aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Your aunt’s opportunity costs comprise * If your aunt thought she could sell $510,000 worth of merchandise in a year, what is your aunt’s accounting profit? *$10,000-$40,000$460,000$0Given the above situation, what is your aunt’s economic profit? *$10,000-$40,000$460,000$01.During a year of operation, a firm collects $5,000,000 (TR) in revenue and spends $3,500,000 (EXPLICIT) on labor expense, raw materials, rent, and utilities. The firm’s owner has provided $1,000,000 of her own money instead of investing the money and earning a 12 percent annual rate of return. Show your work. a. The explicit costs of the firm are $_________. The implicit costs are $_________. Total economic cost is $__________. b. The firm earns accounting profit of $________. The firm’s economic profit is $_________.
- 8. A firm is earning an accounting profit of $5,000. Its implicit costs are $3,000, explicit costs are $8,000, and its economic profit is $2,000. What must its total revenue be? A-$7,000 B-$10,000 C-$13,000 D-$18,000 E-Indeterminate 9. If a firm is maximizing its profit and is earning positive economic profit, which of the following must be true? A- Average total cost < price; marginal cost = marginal revenue B-Average total cost > price; marginal cost = marginal revenue C-Average total cost < average revenue; marginal cost > marginal revenue D-Total cost > total revenue; marginal cost > marginal revenue E- Total cost = total revenue; marginal cost > marginal revenue3. A company makes fidget spinners. They have written formulas for their revenue, R, and their costs, C, based on the number of spinners they make and sell, S: R = 4.31S C = 423 + 1.87S Determine their "break-even" point, where revenue and costs are equal 4. A different company makes dice. They have written formulas for their revenue, R, and their costs, C, based on the number of dice they make and sell, D: R = 0.65D C = 432 + 0.19D Determine their "break-even" point, where revenue and costs are equal.Q3_A The Break even Analysis of firm show that: BEP = 1000 FC = 10,000 $ P = 3% of the quantity of zero profit. A) The point of intersection of TR with TC is at the cost point of $ 45,000 for TR. B) At the point where (zero units sold) TC equals $ 5,000 C) the start of the line drawing for TR is at cost point $ 0 D) the value UVC for the product in question equals $ 10) E)the FC value in a point for BFP equals $ 10,000 For the given choices, showing which one is True and which one is False, correcting the False ones and given a reasonable reason for the True. Write your answer below:
- MonoMed, having a Patent on production of a medicine, has following Demand and Cost Schedule : Price (Rs ) 12 11 10 9 8 7 6 5 4 3 Quantity 0 1 2 3 4 5 6 7 8 9 TVC ( Rs ) 0 13 16 20 25 31 38 46 56 68 Where Fixed Cost is Rs 5 B. Plot the Demand, Marginal Revenue MR, Average Total Cost ATC, Average Variable Cost AVC and Marginal Cost MC Curves of the Firm in a clearly labelled graph.What is the profit maximization for apex firm if we have the following data quantitiy /unit ={0,1,2,3,4,5,6,7,8,9,10} total variable cost =[0,100,180,220,300,390,500,640,800,1000,1250} 2. If the market price dropped to $80, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?3. If the market price dropped further to $40, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?4. Comment on your answers to parts (2) and (3)MonoMed, having a Patent on production of a medicine, has following Demand and Cost Schedule : Price (Rs ) 12 11 10 9 8 7 6 5 4 3 Quantity 0 1 2 3 4 5 6 7 8 9 TVC ( Rs ) 0 13 16 20 25 31 38 46 56 68 Where Fixed Cost is Rs 5 d. Calculate the profit earned, if any and show the area on the firm’s graph.
