Last year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod's shop charges $65 for a repair, and last year the shop performed 5,000 repairs. Jarod's production costs for the year included rent, wages, and equipment. Jarod spent $60,000 on rent and $100,000 on wages for his employees. Jarod keeps whatever profit the shop earns, but does not pay himself an official wage. Jarod borrowed $30,000 for the shop's equipment at an annual interest rate of 4 percent. Instructions: Round your answers to the nearest dollar and include a negative sign if appropriate. a. What is Jarod's accounting profit? $ b. What is Jarod's economic profit? 4
Q: 3. In that economy, If investment rises by 5 to 255, what is the new value of Y? (2 decimals) |C=…
A: The total value of all final goods and services produced by a country within a specific time frame,…
Q: Australia has aimed to achieve full employment by implementing various employment and labor market…
A: The objective of the question is to understand what achieving full employment in an economy like…
Q: LAST WORD Assume that you borrow $5,000, and you pay back the $5,000 plus $250 in interest at the…
A: Nominal interest rate is such interest rate which is derived before taking inflation into…
Q: Consider a macroeconomy where the current population is 0.8 million people. Gross domestic private…
A: Consumption spending is spending of households on final goods and services.Investment is purchase or…
Q: Assume that Canada and Kenya are trading partners. a.lf the real interest rate in Canada decreases,…
A: International trade means the exchange of products and services between countries. It occurs when a…
Q: Statement: Putski Concrete Co. hires one additional worker. Output goes up by 10 units per day. This…
A: A firm will hire the labor until MRPL is greater than or equal to the wage rate. where MRPL is the…
Q: A group of refugees from Syria just moved to the U.S. and are looking for office desk jobs. They are…
A: Unemployment is a situation where the people who want a job but are not getting the same.This means…
Q: “Competition authorities in the world over have observably expanded their consideration of…
A: The question is asking to identify the economic problem described in the given statement and the…
Q: Pliny the Younger, who lives in Montreal, has the following indifference schedule for several…
A: The marginal rate of substitution (MRS) is a measure of how much of one thing a person is willing to…
Q: Most people do not steal, because Multiple Choice O O stolen goods are subject to the law of…
A: Stealing is an act of doing certain sort of theft or robbery with the motive of generating profit.
Q: Your Area Director wants to purchase new ergonomic office equipment for your staff. The total…
A: First cost or purchase price of equipment (FC) = $22,656The salvage value of the equipment after 8…
Q: Market demand is given as Qp = 280 - 4P. Market supply is given as Qs = 2P+ 40. Which legally…
A: Price floor is lowest legal price that can be paid in a market for goods and services, labor, or…
Q: Jean Paul Sartre of Victoria, British Columbia has the total utility for products X and Y shown in…
A: Utility:The utility is want satisfying power of a commodity. It can be expressed in cardinal and…
Q: True or False: The government can raise its tax revenue by increasing the per-unit tax on wine. True…
A: Taxes are imposed by the government on certain goods which they expect to be consumed at a larger…
Q: Using the Isorevenue , how many bushels of corn you will produce? From your answer to a) illustrate…
A: Isorevenue curve represents the combination of 2 goods, when sold in the market provides the same…
Q: In March 2023, imports for the US exceeded their exports by $60.6 billion. In June 2023, the…
A: The question is asking about the potential long-term impact on the US if the trend of imports…
Q: 2. Real versus nominal GDP Consider a simple economy that produces two goods: plastic cups and…
A: Nominal GDP refers to the market value of all the final goods and services produced in an economy…
Q: The Nash equilibrium occurs when O both firms have an incentive to deviate from this strategy given…
A: The game matrix is given below:RareAirHighLowUptownHighA (12,12)B (6,15)LowC (15, 6)D (8,8)
Q: In 2022, the corporate tax rate was reduced from 28% to 27%. This decision forms part of South…
A: The question is asking to identify the type of policy that the decision to reduce the corporate tax…
Q: A budget line is a graph that shows the various combinations of two products that a Multiple…
A: A budget line refers to the all possible combination or all possible bundle of two goods that can be…
Q: When deciding on output levels, members of a cartel
A: A cartel is a group of similar, independent companies which join together to fix prices, limit…
Q: Market imperfections abound in Canada, brought about by externalities. If some activity creates…
A: Market imperfection occurs when an economic market does not meet rigorous standards of the…
Q: Quantity 1 2 3 4 5 Pizza Total utility 95 180 255 320 375 Quantity 1 2 3 4 5 CDs Total utility 170…
A: The information about the utility table is given below. PizzaCDQuantity Total Utility Quantity Total…
Q: Suppose that Anna's college education would cost around $500,000 when they enter college in 15…
A: Investment regularly alludes to the allotment of money, time, or resources with the assumption for…
Q: Which is not a phenomenon studied under econometrics? (a). Consumption pattern. (b). Consumer…
A: Econometrics is a field that blends economics, statistics, and mathematics to analyze and quantify…
Q: Refer to the figure below: Price or Cost (dollars per unit) Po MC A 0 ATC MC a. an unregulated…
A: Monopoly is a form of imperfect competition. There is one firm. The number of consumers is high.…
Q: Assume that health insurance is private in a country, and the market for insurance is competitive.…
A: Marginal social benefit refers to the satisfaction received by consumers of a good or service plus…
Q: 2. Suppose you run a regression with quantity as your dependent variable and advertising as one of…
A: Regression analysis is a statistical technique used in economics to examine the connection between…
Q: A profit-maximizing perfectly competitive firm must decide Multiple Choice a .both what price to…
A: A perfectly competitive market has large number of identical firms selling homogenous goods. In a…
Q: The following two alternatives are given.) Data First Cost Annual Cost Annual Benefit Life, Years…
A: Internal rate of return refers to a capital budgeting calculation for deciding which projects or…
Q: Which one of the following statements about preferences is true? O Quasilinear tastes can be…
A: Consumer preferences allude to the emotional likes and dislikes that people have for various goods…
Q: What type of economic viewpoint puts an emphasis on long run economic performance? Phillips…
A: Economic analysis is the methodical way to deal with determining the optimum utilization of scarce…
Q: The taped water supply in South Africa is an example of a natural monopoly industry. Which of the…
A: A natural monopoly refers to the type of monopoly in an industry or sector with high barriers to…
Q: The publisher of a magazine gives his staff the following information: Current price Current sales…
A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…
Q: Ex: Consider a discount bond that has a 1000 TL face value. Current price of the bond is 900 TL and…
A: Yield to maturity (YTM) is the internal rate of return (IRR) of an investment in a bond if the…
Q: Khanh.enjoys toffees and hot chocolate.. Below is the total utility she gets from each.good.…
A: Utility in economics is the measure of satisfaction that a consumer derives from consuming a good or…
Q: Set up an aggregate demand-aggregate supply model in the long run equilibrium. Be sure to label all…
A: AD and AS models in the long run establish the equilibrium output level which is also known as full…
Q: A $5,000 balance in a tax-deferred savings plan will grow to $159,602.00 in 45 years at an 8% per…
A: If it is subject to a 30% income tax rate, we first need to calculate the present value of the…
Q: When will the deadweight loss be created? When a binding price constraint is implemented…
A: Deadweight loss, in economics, refers to the loss of economic efficiency that happens when the…
Q: The next 6 questions relate to the following table. Calculate total revenue at a quantity of 5…
A: quantitypricetotal revenuetotal…
Q: Consider a firm that uses capital and labor as inputs and sells 5,000 units of output per year at…
A: Economic profit is difference between revenue a firm generates and the total costs it incurs,…
Q: Compare the short-run and the long-run equilibrium in monopolistic competition with graphs; explain…
A: In monopolistic competition, each firm has some market power due to product differentiation, but in…
Q: 3. Elastic and inelastic supply The following graph plots a supply curve for some hypothetical good.…
A: Elasticity of supply measures the responsiveness or degree of how much quantity supplied of a good…
Q: Economic growth is said to be a necessary but not sufficient condition to eradicate absolute poverty…
A: Economic growth basically refers to the expansion in a nation's production of goods and services…
Q: What is the fixed cost, when output is 1, total cost is 7, total revenue is 10, average revenue is…
A: Cost:Cost is defined as the expenditure. It is expressed in terms of money value in the production…
Q: 59:15 S Douglas Ford, a consumer from Toronto is in equilibrium and is spending income so that the…
A: Marginal utility refers to the additional gain or benefit to the consumer by the consumption of one…
Q: Describe a situation where only looking at the median may be misleading.
A: The objective of the question is to understand a scenario where relying solely on the median as a…
Q: kindly assist Which of the following individuals may NOT be considered unemployed in official labor…
A: The objective of the question is to identify which individual among the given options would not be…
Q: explain What can be a key factor to consider to ensure long-term economic growth as planned?A.…
A: The objective of the question is to identify the key factor that can ensure long-term economic…
Q: Customers are increasingly exchanging regular money into e-money, which they can conveniently use to…
A: Money is a medium of exchange that is broadly acknowledged in transactions including goods,…
Step by step
Solved in 3 steps
- Sam decides to quit his job as a corporate accountant, which pays $11,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $305 a month if he wasn’t using it as a home office. He must purchase office supplies worth $70 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. After six months of working from home, Sam has earned an average of $13,000 per month. a. What are Sam’s average monthly accounting profits? $ b. What are Sam's average monthly economic profits? $Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $315 a month if he wasn’t using it as a home office. He must purchase office supplies worth $85 a month, and his monthly electricity bill has increased by $40 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $17,000 per month. Instructions: Enter your answers as a whole number. a. What are Barney’s monthly explicit costs? $ b. What are Barney’s monthly implicit costs? $ c. What are Barney’s monthly economic costs? $Barney decides to quit his job as a corporate accountant, which pays $15,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $315 a month if he wasn’t using it as a home office. He must purchase office supplies worth $60 a month, and his monthly electricity bill has increased by $40 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $17,000 per month. Instructions: Enter your answers as a whole number. a. What are Barney’s average monthly accounting profits? $ b. What are Barney’s average monthly economic profits? $
- Barney decides to quit his job as a corporate accountant, which pays $14,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $320 a month if he wasn’t using it as a home office. He must purchase office supplies worth $70 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $16,000 per month. Instructions: Enter your answers as a whole number. a. What are Barney’s monthly explicit costs? $ b. What are Barney’s monthly implicit costs? $ c. What are Barney’s monthly economic costs? [i need a,b,c answer i will 5 upvotes]Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she’ll be able to sell twice as much coffee Do you think she’s likely to be right? Why or why not? Yes, hiring more workers will mean more customers can be served. Yes, more workers will increase the supply and make more coffee available for sale. No, more workers will just create more chaos behind the counter as the additional workers still have to wait to fill from the coffee machine. No, the current workers just need better training to work more efficiently. Adding more and more workers does not constantly increase…Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she’ll be able to sell twice as much coffee. a. Adding more and more workers does not constantly increase production because of _______ SELECT THE CORRECT ANSWER different productivity levels between various laborers. diminishing marginal costs. diminishing marginal product of labor. substitutes in production.
- Item 3 Kanesha is an entrepreneur and has recently opened her first coffee shop, The Coffee Cat. She pays $2,400 rent each month, $3,200 for employee payroll, and $900 for supplies. She was planning on selling several of her own tables and chairs on Craigslist for $300, but instead she brought them to The Coffee Cat. Additionally, she quit working as an accountant where she was earning $53,000 per year to open up the shop. Based on this information, identify: Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. a. Explicit costs. check all that apply 2 Payroll Tables and chairs Supplies Accounting wages given up Rent b. Implicit costs. check all that apply 4 Accounting wages given up Tables and chairs Payroll Rent Supplies Calculate annual: Instructions: Enter your responses as a whole number. c.…H6. Your mother owns and runs an arts and craft store, and the business is doing well. She would have otherwise been employed as a high school geography teacher making $80,000 a year or as an interior decorator making $68,000 a year. She owns the building in which her shop is located, which she could have rented out for $24,000 a year. Her annual revenue from the shop is $430,000 and she employs four workers, each of whom earns $30,000 a year. On average, she spends $206,000 per year traveling, purchasing, and shipping unique merchandise for resale at her store. Based on this information, do you think you should encourage her to return to teaching? Explain your advice with the help of calculations on her opportunity costs, accounting profit, and economic profit.Katie quit her job which paid her $30,000 a year in order to start a pizza restaurant. In her first year, she used $100,000 she had in her retirement account and bought a pizza oven, tables, and chairs for her restaurant. If she did not buy the oven, tables, and chairs she would have left the money in her retirement account and earned a return of 10%. She also spent $50,000 on pizza ingredients and $30,000 on wages for a worker she hired. Her total revenue for the year is $110,000. What is Katie’s economic profit for this year?
- 1.Explain how a firm uses resources price and value data to determine the appropriate combination of capital and labor resources to use in order to maximize profits. 2.how does this change when the firm want to produce a specific quantity of product with the least cost combination of resources? 3. if a software firm estimates that the MP of labor is 3 apps per month and the price is labor is $1100 per month, while the MP of capital is 5apps per month and its price is $2000, should the firm hire more labor and decrease its capital use or increase its use of capital and use fewer labor resources?Question Recently, the owner of KFC Franchise decided to change how she compensated her top manager. Last year, the manager received a fixed salary of $50,000 and KFC made $110,000 in profits (excluding the manager’s compensation). She feared that her store’s performance was connected to the top manager shirking on the job and expected that changes to her top manager’s compensation structure would improve sales. Therefore, this year she decided to offer him a fixed salary of $40,000 plus 5 percent of the store’s profit. Since the change, the store is performing much better, and she forecasts profits this year to be $300,000 (again, excluding the manager’s compensation). Assuming the change of compensation is the reason for the increased profits, and the forecast is accurate, how much more money will the owner make (net of payment to her top manager) because of this change? Does the manager make more money under the new payment scheme?Please no written by hand solutions K Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $80,000 a year, and he pays workers $150,000 in wages. In return, he produces 100,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 2 percent and that the farmer could otherwise have earned $35,000 as a shoe salesman. What is the farmer's economic profit? The peach farmer earns economic profit of $ (Enter your response as an integer.)