Linder which of the folowing asamples is E likaly that the accounting profit is pasitiva and the econamic proft is nagative?OA Uing a restaurant you purchened to seil Mexioan food inatead of taian foodOB Fyou use a diamond mine as a lourist atraction instead of using it for miningOG. Opering a bark branch neer a university campua.OD. Such a sceraro, where accouning cost is postive and economic proft is negative, is not poesitie.

Linder which of the folowing anamples isikay that he acounting proft is pasitive and the econame prot is negatve OA Using a restaurant you purchaned to sl Meican foed atead of halen ood OR Fyou ue a diamond mine a lourist atraction intead of using for mining O. Opering a bark branch neerauniversly campua. OD. Buch a scenafo, where accounting cost is positive and economie profna negaive, is not ponsitie

Linder which of the folowing anamples isikay that he acounting proft is pasitive and the econame prot is negatve OA Using a restaurant you purchaned to sl Meican foed atead of halen ood OR Fyou ue a diamond mine a lourist atraction intead of using for mining O. Opering a bark branch neerauniversly campua. OD. Buch a scenafo, where accounting cost is positive and economie profna negaive, is not ponsitie

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...

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Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
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.
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