If You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year. then your economic profit is Select one: a. 10,000 O b. -10,000 O c. -40,000 O d. 20,000 O e. 40,000
Q: 20 MC ATC AVC 16 12 8. 5 10 15 20 25 30 35 40 45 50 Quantity (units per day) In the above figure, at…
A: A perfectly competitive market is one that has a large number of buyers and sellers, selling…
Q: The Supply Room, an online school supply store, grew rapidly. As a result of achieving a much larger…
A: The given statement is saying with increase in size of production, firm's production cost is…
Q: Quantity Total Revenue Total Cost $O $1 1 10 16 2 20 22 3 30 29 4 40 37 5 50 46 60 56 7 70 67 80 79…
A: Marginal revenue is equal to change in total revenue with respect to change in quantity. Marginal…
Q: Suppose a farmer in Georgia begins to grow peaches He uses $1,000,000 in savings to purchase land,…
A:
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: Table Cost.EX2.2: Costs, Marginal Revenues and Outputs for a Competitive Firm Marginal Marginal…
A: Given information:- As per MC(Marginal Cost) and MR (Marginal Revenue) approach, the maximum…
Q: The current market price in a competitive industry is $15. Every firm in the industry operates a…
A: In competitive industry, there are large number of firms selling identical goods.
Q: Total Product Labor (pairs of shoes) 1 20 50 3 75 80 75 Refer to Table 7.2, which shows labor and…
A: A consumer's increased enjoyment from having one more unit of an item or service is referred to as…
Q: SCENARIO 1: You are the owner and the only employee of a company that writes computer software that…
A: Economic profit = Total revenue - Implicit costs - Explicit costs.
Q: Joe is the owner-operator of Joe's Haircuts Unlimited. Last year he earned $175,000 in total…
A: Economic profit = Revenue - Explicit cost - Alternate income given up (Implicit cost) = 175,000 -…
Q: If You are the owner and only employee of a company that writes computer software that is used by…
A: One of the key motives of forms operating in a market is profit. Profit is the difference between…
Q: Which type of cost does depend on a firm's output? Select one: O A. marginal cost O B. total cost O…
A: Fixed cost is the cost that is incurred on fixed factors and does not change with the level of…
Q: For one period, a firm has fixed cost equal to $8,000 and a marginal cost of $7 per unit of output…
A: In a perfectly competitive market there are large number of firms producing similar and identical…
Q: Andrea starts her own business, which earns $75,000 in accounting profit in the first year. When…
A: Here we calculate the economic Profit of the Andrea's from this business and choose the correct…
Q: You have started your own bakery and you are the sole employee. Your total revenue was $100,000.…
A: 1. Given, Total revenue = $100,000 Explicit cost = $60,000 Implicit cost = $80,000 Since the cost…
Q: SCENARIO 1: You are the owner and only employee of a company that writes computer software that is…
A: Answer - Need to find - Economic cost in a year Given in the question - Revenue is $90,000. Cost…
Q: In what sense is profit a cost of production? Select one: O a. Profit levels in each industry are…
A: ‘Profit’ or ‘Economic Profit’ is the difference between the revenue earned from the production and…
Q: Use the revenue and cost functions below, to answer parts (A). (B). and (C). (C) Choose the best…
A: Profit is the difference between total revenue and total cost. Total revenue is calculated by…
Q: SCENARIO 1: You are the owner and only employee of a company that writes computer software that is…
A: Accounting profits are the profits made by the firm by producing and selling products. It is the…
Q: Imagine a fırm that has the following costs and revenue: Revenue: $120,000 Input Costs: $100,000…
A: An economic profit is a difference between the money generated by a business entity's outputs and…
Q: 12) Hector's mill produces flour. His short-run total cost function is C(y) = 200+800y, where y is…
A: Profit maximisation is the ultimate goal of every private firm operating in the market.
Q: If You are the owner and only employee of a company that writes computer software that is used by…
A: Opportunity cost: - opportunity cost is a forgone benefit which we could have earned by applying all…
Q: Corinne is offered a job with a salary of $70,000, which she turns down to start her own business.…
A: There are two types of profit: Economic Profit Accounting Profit The economic profit can be…
Q: hey i was doing my homework and i couldnt figure out this one. please help
A: The average total cost is equated at an equal average fixed cost in addition to the average variable…
Q: Table 1A: Costs and Total Production for a Competitive Firm Total Total Total Total Marginal Average…
A: Fixed cost is independent of output produced whereas variable cost varies with the level of…
Q: Situation 21-1 Diane's Donuts will begin selling donuts next week. Diane figures that the average…
A: Total Cost = Total Variable Cost + Total Fixed Cost Total Variable Cost = Average Variable Cost x…
Q: MC Costs, P Find Q where MR = MC P₁ = $20 MR, ATC ATC, = $15 Q Q₁ = 7 (bushels of apples) Refer to…
A: In the given graph, MR curve is horizontal, which explains that the market is perfectly competitive…
Q: The minimum possible average cost of production for videotape rentals is S1.50, and the minimum…
A: In the mentioned question we have been asked when the company should shut down the video tape rental…
Q: Short-Run P Marginal Cost $105 Average Total Cost Average Variable Cost $88 $55 460 1675 600 Refer…
A: Profit is maximized where marginal revenue is equal to marginal cost.
Q: Labor (workers) Output 1 20 2 50 70 4 80 85 The table shows daily output for small pizzeria based on…
A: Labor refers to the complete group of people who labour for a living in economics. The phrase…
Q: B. The table below shows the cost structure of a hypothetical firm, ClementAddae Enterprise.…
A:
Q: You are the owner and only employee of a company that sets odds for sporting events. Last year you…
A: economic profit is calculated by deducting explicit and implicit cost from revenue. Hence, economic…
Q: Assume that the most efficient production technology available for making vitamin pills has the cost…
A: OUTPUT TC MC ATC 25,000 1,00,000 0.50 50,000 1,50,000 1 75,000 1,87,500 2.5 1,00,000…
Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…
A: Profit is determined by deducting the costs from the income. While working out the monetary profit,…
Q: 1. If the marginal product of an input is falling, then what must be true? Average fixed costs must…
A: Marginal product means the extra output generared by adding a unit of input.
Q: QUESTI ON 16 Suppose that for a particular firm the only variable input into the production process…
A: Disclaimer :- as you posted multiple questions we are supposed to solve the first one only as per…
Q: Assume that the most efficient production technology available for making vitamin pills has the cost…
A: A) ATC = TC/Q ATC(1)= 170,000/50,800 = 3.35 ATC(2)= 220000/100,800 = 2.18 ATC(3)= 257,500/150,800…
Q: Maryam could work for another firm making $10,000 per month, but she decides to open her book store…
A: Economic profit or loss is the difference between the revenue received from the sale of an output…
Q: Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land,…
A: Accounting profit is the profit or the net income for the firm and the company after reducing all…
Q: Samantha Roberts has a job as a pharmacist earning $30,000 per year, and she is deciding whether to…
A: (a)The business and economic profit:Business profit and economic profit can be calculated as…
Q: Aji Fatou is thinking about opening a hardware store. She estimates that it would cost $500,000 per…
A: * ANSWER :- Given that , Aji Fatou is thinking about opening a hardware store she estimates that…
Q: Revenue and Cost Data for a Perfectly Competitive Firm Daily Output Price Total Revenue TFC TVC TC…
A: Average Variable Cost (AVC) is Total Variable Cost (TVC) per unit of output.
Q: Assume that the most efficient production technology available for making vitamin pills has the cost…
A: Cost basically refers to the total expense that occurs in a production process. It includes both…
Q: Units Produced Total Revenue Total Costs 0 0 200 1 600 660 2 780 720 3 840 780 4 890…
A: Monopolistic competitive market is a market structure in which there are large number of sellers…
Q: Assume that the most efficient production technology available for making vitamin pills has the cost…
A: (a) Output TC MC ATC 25000 1,00,000 0.5 4 50000 1,50,000 1 3 75000 1,87,500 2.5 2.5…
Q: Assume that the most efficient production technology available for making vitamin pills has the cost…
A: The industry determines the price for the firms in the competitive market structure. All the firms…
Q: a Competitive Firm Marginal Marginal Output Cost Revenue (Q) (MC) (MR) 10 $3.00 $4.00 11 $3.50 $4.00…
A: Marginal cost is the additional cost incurred with additional unit sold. Marginal revenue is the…
Q: Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles,…
A: The cost of producing the ketchup includes both the opportunity cost as well as the explicit costs.…
Q: In the theory of the firm, profit is maximized at a rate of production at which O Economic profit is…
A: The theory of the firm is a work of classical economists like David Ricardo and Leon Walras. It is…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?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.How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
- What is die difference between accounting and economic profit?a) Assume that the output of a company is given by y (K, L) = K^0.5 * L^0.5, where the amount of capital on shortterm is given by K = 1 and wage costs are given by w = 1. Calculate and illustrate themaverage variable costs and marginal costs (marginal costs).b) In addition, assume that the price of capital is given by r = 1. Calculate the average totalsthe costs and illustrate using a figure where you also include the marginal cost asyou found in a). Comment on what you find.A tuition agency hires tutors to teach students. The following table displays how total outputincreases as tutors increase.No. of Tutors 1 2 3 4 5Total No. ofStudents4 10 18 24 3Tutors cost $50 each regardless of how many students each tutor has. The agency paid $500 in non-refundablemarketing fees to set up the business as a fix cost. In the short run, considering the shut-down condition, whatis the lowest price per student Tom’s tuition agency can charge? Explain your answer.
- The accompanying table presents the expected cost and revenuedata for the Tucker Tomato Farm. The Tuckers produce tomatoesin a greenhouse and sell them wholesale in a price-taker market.a. Fill in the firm’s marginal cost, average variable cost,average total cost, and profit schedules.b. If the Tuckers are profit maximizers, how many tomatoesshould they produce when the market price is $500 perton? Indicate their profits.c. Indicate the firm’s output level and maximum profit if themarket price of tomatoes increases to $550 per ton.d. How many units would the Tucker Tomato Farm produce ifthe price of tomatoes fell to $450 per ton? What would bethe firm’s profits? Should the firm stay in business? Explain.i just need a short answer like an examples please . .. Use an appropriate example from your experience to distinguish b etween accounting profit, economic profit, and normal profit. Based on your analysis, does accounting profit or economic profit determine how entrepreneurs allocate resources between different business ventures? Please explain based on your example.You are currently in a job as a chef in a restaurant earning $100,000 per year. You are considering opening up a restaurant in a building which you currently own. You estimate that, if you wanted to, you could rent out your building for $25,000 per year to another restaurant. Last year, your revenues and expenses from the restaurant were the following: Revenues $400,000Cost of Food $120,000Salaries/Wages $100,000Utilities $25,000Taxes $20,000 What is your accounting profit? Show your calculations What is your economic profit? Show your calculations Assuming that you are indifferent between being a chef or owning a restaurant, should you open up your restaurant? Explain why. Now suppose that instead of owning the building where your restaurant will be located, you had to pay rent of $25,000 per year for the building. Will your answers to parts 1-3 change? Show your calculations. Explain how and why your answers will change or…
- Crawford Computing finds that its weekly profit, in dollars, from its production and sale of x laptop computers is P(x)=-.002x^3-.15x^2+400x-800 Currently, Crawford builds and sells 9 laptops weekly. (a) what is the current weekly profit? (b) how much profit would be lost if production and sales dropped to 8 laptops weekly? (c) what is the marginal profit with x=9? (d) use answers from parts (a) and (c) to estimate the profit resulting from the production and sale of 10 laptops weekly.Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…