Monique has a flock of six chickens in her backyard that she initially bought for $6 each. The flock currently lays 20 eggs per week, which Monique and her family consume at home, and her current cost of feed is $2 per week. Monique has a job that pays $8/hour with flexible hours, but she is thinking of selling her chickens’ eggs to earn extra income. To start selling eggs, she would need to increase production to 30 eggs per week. She can do this by increasing the chickens’ feed to $3 per week and taking an hour off work each week to devote to chicken rearing. If the market price of her farm-fresh eggs is $1 per egg, what would be Monique’s weekly economic profits from selling her chickens’ eggs? (Select one from below) (a) −$9: This is her revenue minus her accounting cost. (b) −$1: This is her revenue minus her production cost. (c) $0: Eggs are a constant-cost market so producers must earn 0 profits. (d) $1: This is her revenue minus her economic cost. (e) $7: This is her revenue minus her accounting cost. (f) $9: This is her revenue minus her variable cost. (g) $19: This is her revenue minus her economic cost. (h) $21: This is her revenue minus her variable cost. (i) $27: This is her revenue minus her accounting cost. (j) $30: This is her sales profit.
Monique has a flock of six chickens in her backyard that she initially bought for $6 each. The
flock currently lays 20 eggs per week, which Monique and her family consume at home, and
her current cost of feed is $2 per week. Monique has a job that pays $8/hour with flexible
hours, but she is thinking of selling her chickens’ eggs to earn extra income. To start selling
eggs, she would need to increase production to 30 eggs per week. She can do this by increasing
the chickens’ feed to $3 per week and taking an hour off work each week to devote to chicken
rearing. If the market price of her farm-fresh eggs is $1 per egg, what would be Monique’s
weekly economic profits from selling her chickens’ eggs? (Select one from below)
(a) −$9: This is her revenue minus her accounting cost.
(b) −$1: This is her revenue minus her production cost.
(c) $0: Eggs are a constant-cost market so producers must earn 0 profits.
(d) $1: This is her revenue minus her economic cost.
(e) $7: This is her revenue minus her accounting cost.
(f) $9: This is her revenue minus her variable cost.
(g) $19: This is her revenue minus her economic cost.
(h) $21: This is her revenue minus her variable cost.
(i) $27: This is her revenue minus her accounting cost.
(j) $30: This is her sales profit.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
