Under which of the folowing axamples is t likaly that the accounting profit is positive and the economic profit is negative?OA Using a restaurant you purchased to sell Mexican food instead of Italian food.B. If you use a damond mine as a touriet attraction instead of using it for mining.C. Opening a bank branch near a university campus.OD. Such a scenario, where accounting cost is positive and economic proft is negative, is not possible.

Inder which of the folowing axamples is tlikaly that the accounting profit is positive and the economic proft is negative? DA Using a restaurant you purchased to sell Mexican food instead of talian food. OR If you use a damond mine as a touriet atraction instead of using it for mining Dc. Opening a bank branch near a university campua. OD. Such e scenario, where accounting cost is positive and economic proft ia negative, is not possibie.

Inder which of the folowing axamples is tlikaly that the accounting profit is positive and the economic proft is negative? DA Using a restaurant you purchased to sell Mexican food instead of talian food. OR If you use a damond mine as a touriet atraction instead of using it for mining Dc. Opening a bank branch near a university campua. OD. Such e scenario, where accounting cost is positive and economic proft ia negative, is not possibie.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

See similar textbooks

Similar questions

What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
How does fixed cost affect marginal cost? Why is this relationship important?
Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
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.
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
The WipeOut Ski Company manufactures skis for beginners. Fixed costs are 30. Fill in Table 7.16 for total cost, average variable test, average total cost, and marginal cost.