Plz provide correct answer.previus answer is incorrect.plzz use data given in question beside as you need .thank you In 2019 Toni taught music and earned $30,000.Question FactsOn January 1, 2020, she quit teaching and started a home decorating business.1. Toni stopped renting out her basement for$6,000 a year and used it as her business officeUse the question facts to calculate Toni's opportunity cost of production and economic profit in the first year.instead.Toni's opportunity cost of production in 2020 is2. She paid $1,000 for a set of sample booksand $2,000 for a booth at the Home Show.O A. $69,5803. She earned interest at 4 percent a year on hersavings account balance.B. $5,000C. $68,000She took $2,000 from her savings account to buy asewing machine.D. $66,5804. At the end of 2020, Toni could have sold hersewing machine for $1,500.Toni's economic profit in the first year is5. She received a total revenue of $30,000 from herhome decorating business.O A. $27,0006. Normal profit is $30,000 a year.B. $30,000C. $- 39,580D. $- 36,580

In 2019 Toni taught music and earned $30,000. Question Facts On January 1, 2020, she quit teaching and started home decorating business. 1. Toni stopped renting out her basement for $6,000 a year and used it as her business office instead. Use the question facts to calculate Toni's opportunity cost of production and economic profit in the first year. 2. She paid $1,000 for a set of sample books and $2,000 for a booth at the Home Show. Toni's opportunity cost of production in 2020 is O A. $69,580 3. She earned interest at 4 percent a year on her savings account balance. O B. $5,000 She took $2,000 from her savings account to buy a sewing machine. 4. At the end of 2020, Toni could have sold her sewing machine for $1,500. OC. $68,000 O D. $66,580 Toni's economic profit in the first year is 5. She received home decorating business. total revenue of $30,000 from her O A. $27,000 O B. $30,000 6. Normal profit is $30,000 a year. OC. $-39,580 O D. $-36,580

In 2019 Toni taught music and earned $30,000. Question Facts On January 1, 2020, she quit teaching and started home decorating business. 1. Toni stopped renting out her basement for $6,000 a year and used it as her business office instead. Use the question facts to calculate Toni's opportunity cost of production and economic profit in the first year. 2. She paid $1,000 for a set of sample books and $2,000 for a booth at the Home Show. Toni's opportunity cost of production in 2020 is O A. $69,580 3. She earned interest at 4 percent a year on her savings account balance. O B. $5,000 She took $2,000 from her savings account to buy a sewing machine. 4. At the end of 2020, Toni could have sold her sewing machine for $1,500. OC. $68,000 O D. $66,580 Toni's economic profit in the first year is 5. She received home decorating business. total revenue of $30,000 from her O A. $27,000 O B. $30,000 6. Normal profit is $30,000 a year. OC. $-39,580 O D. $-36,580

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3PA

See similar textbooks

Similar questions

(Scenario: Accounting and Economic Profit) Use Scenario: Accounting and Economic Profit. What is the opportunity cost of Wang's $100,000 inheritance being used to start his business?Scenario: Accounting and Economic ProfitRather than put the $100,000 that his grandmother left him in a mutual fund that earns 5% each year, Tommy Wang quit his job, which paid $60,000 per year, and started Wang's Wicker Furniture Store. He rented a showroom for $20,000 for the year, purchased $60,000 in wicker furniture, and incurred costs of $40,000 for sales help and advertising. In his first year, his revenue was $150,000.
Farmer McDonald gives banjo lessons for $20 an hour. One day, he spends10 hours planting $100 worth of seeds on his farm. What opportunity cost has he incurred?What cost would his accountant measure? If these seeds yield $200 worth of crops, doesMcDonald earn an accounting profit? Does he earn an economic profit?
2.The table shows the production function of jackie’s Canoe Rides: Labor Plant 1 (output) Plant2(output) Plant3(output) Plant4(output) 10 20 40 55 65 20 40 60 75 85 30 65 75 90 100 40 75 85 100 110 Canoes 10 20 30 40 Jakie Pays $100 a day for each canoe it rents and $50 a day for each canoe operator it hire Graph the ATC curves for plant 1 and Plant 2. On jackie’s LRAC curve what is the average cost of producing 40, 75 and 85 rides a week? What is jackie’s minimum efficient scale?
Bonnie decides to open a company and earns JD50,000 in accounting profit the first year. When deciding to open the company, she took JD20,000 from her savings, which earned 5 percent interest. She also turned down three separate job offers with annual salaries of JD30,000, JD40,000, and $JD45,000. What is Bonnie's economic profit from opening her own company?
Which of the following profits represent economic profit? Choose all that apply. a. A restaurant makes $10,000 per month in total revenue. Supplies cost $2,000 per month, and labor costs are $3,000 per month. The restaurant's profit is $5,000. b. During the summer, you make ten go-karts and sell each one for $100. It costs you $200 in supplies You could have made $500 during the summer if you had chosen to deliver phone books. Your total profit is $300. c. A high-end airplane company sells five private jets per year. Each jet is sold for $10 million. The profit margin is 12 percent . If you were to change course and make yachts with the same available resources , you would make no additional profit. d. Your company sells 1, 000 cars per month . Each car costs $20,000 . Your cost for parts is $4 million . Your labor costs are $3 million . Your total profit is $13 million .
Which of the following profits represent economic profit? Choose all that apply. a. Your company sells 1,000 cars per month. Each car costs $20,000. Your cost for parts is $4 million. Your labor costs are $3 million. Your total profit is $13 million. b. During the summer, you make ten go-karts and sell each one for $100. It costs you $200 in supplies. You could have made $500 during the summer if you had chosen to deliver phone books. Your total profit is $300. c. A restaurant makes $10,000 per month in total revenue. Supplies cost $2,000 per month, and labor costs are $3,000 per month. The restaurant's profit is $5,000. d. A high-end airplane company sells five private jets per year. Each jet is sold for $10 million. The profit margin is 12 percent. If you were to change course and make yachts with the same available resources, you would make no additional profit.
Use the following data to answer the question. The letters A, B, and C designate three successively larger plant sizes. Output ATC-A ATC-B ATC-C 10 $ 6 $ 13 $ 44 20 5 9 35 30 4 6 27 40 5 4 20 50 7 3 14 60 10 4 11 70 14 5 8 80 19 7 6 90 25 10 5 100 32 16 7 In the long run, the firm should use plant size "A" for Multiple Choice all possible levels of output. 10 to 30 units of output. 30 to 60 units of output. all outputs greater than or equal to 40.
5. Costs in the short run versus in the long run Ike’s Bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company’s short-run average total cost (SRATC) each month for various levels of production if it uses one, two, or three factories. (Note: Q equals the total quantity of bikes produced by all factories.) Number of Factories Average Total Cost (Dollars per bike) Q = 25 Q = 50 Q = 75 Q = 100 Q = 125 Q = 150 1 440 320 240 320 480 720 2 580 400 240 240 400 580 3 720 480 320 240 320 440 Suppose Ike’s Bikes is currently producing 125 bikes per month in its only factory. Its short-run average total cost is................................$ per bike. Suppose Ike’s Bikes is expecting to produce 125 bikes per month for several years. In this case, in the long run, it would choose to…
Buffy is thinking about opening an amulet store. Sheestimates that it would cost $350,000 per year to rentthe location and buy the merchandise. In addition,she would have to quit her $80,000 per year job as avampire hunter. Buffy thinks she can sell $400,000 worth of amulets in a year. What would her accountant consider the store’s profit? 2. Should Buffy open the store? Explain.
#38 Use the data in the table to find the marginal cost of producing the 6th units of output. Q P TC TR MR MC Profit 0 $5 $9 1 $5 $10 2 $5 $12 3 $5 $15 4 $5 $19 5 $5 $24 6 $5 $30 7 $5 $45 Question 38 options: a) $6.00 b) 4.$30.00 c) $27.00 d) $5.00
Tony is a wheat farmer, but he spends part of his day teaching guitar lessons. He has more students requesting lessons than he has time to teach and still maintain his farm. Tony charges $25/hr for guitar lessons. One spring day he spends 10 hours in his field planting $130 worth of seeds, which he expects will produce $300 worth of wheat. What will Tony’s economic profit equal?
Question 1.A Complete the following table and what production technique should this firm use: Assuming the price of capital (k) is $5 and the price of labor (L) is $10, and the price of commodity (Q) is $3. Technique Q L K TR TC Profit(π) A 50 10 6 B 50 9 8 C 50 5 10 D 50 12 8 E 50 2 10 F 50 7 12