Morgan took $400 000 out of their savings account to start an ice cream stand. The savings account paid 5% interest. In the first year, Morgan sold 12,000 batches of ice cream at a price of $3 each, and incurred costs of $12,000 which involved outlays of money. What was Morgan’s economic profit in the first year?

Q: The following is cost Information for the Creamy Crisp Donut Company. Entrepreneur's potentlal…

A: Given:Entrepreneur potential earnings as a salaried worker=$40,000  Annual lease on building=$25,000…

Q: Bessie wants to calculate the accounting and economic profits on her cattle farm in Nebraska. She…

A: a. Accounting profit = revenue - explicit cost  = 140000 - 130000 = 10000

Q: Gomez runs a small pottery firm. He hires one helper at $12000 per year, pays annual rent of $5000…

A: Accounting profit is the net profit of a firm which is total revenue minus explicit costs. Economic…

Q: A Farmer‘s production function Y =100 × 1. Among farmer's ownership, fixed land rental &…

A: production function, in economics, is a condition that communicates the connection between the…

Q: Danielle decides to withdraw her savings of $70,000 and invest in starting her own clothing…

A: Accounting profit is a company's net income, which is revenue minus expenses. Economic profit is…

Q: 22) Ace Shoe Company sells heel replacement kits for men's shoes. It has fixed costs of $6 million…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: C) Video Productions sells DVD for $60. The variable cost per DVD is $36, and the fixed costs per…

A: Given:Price of each DVD=$60Variabl cost=$36Fixed cost=$120,000

Q: David runs his own business. He received an offer from a company for $50,000 per year. If he sells…

A: Accounting profit is the revenue earned by the company after the reduction of all the explicit cost.…

Q: 2. September 2019/2020 Tim decided to quit from his job as an event manager where he earned…

A: A firm can compute its accounting and economic profit by using the implicit and explicit cost. It…

Q: The following is cost Information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A:

Q: Stark Industries' accounting profit for the year ended 31 December 2012 amounted to $3,130 million.…

A: Economic profit refers to the surplus value that a producer earns in addition to the normal level of…

Q: A man managing a restaurant for $20,000 per year decides to open his own diner. His revenue during…

A: Every business has two types of cost, implicit and explicit

Q: If Hasan runs the restaurant himself and before setting up this business, he was working in a…

A: An economic profit is the difference between the revenue a commercial entity has received from its…

Q: Calculate the economic losses for Firm 1 if they decide not to produce -$_ 用目 Firm 2 Firm 1 Output =…

A: Here, given information about firm 1 is: Output: 10 Average fixed cost: $1 Average variable cost:…

Q: derivative of the firm's profit function is F′(x) = −0.03x2 + 3x - 100, where x ≥ 0 is the output…

A: Profit is the difference between Total cost a nd total revenue . And in this case the marginal…

Q: Fatima sells 100 bottles of homemade ketchup for $ 10 each. The cost of the ingredients, the…

A: Answer: Given, Total number of bottles sold= 100 Price of a bottle=$10 Cost of ingredients, the…

Q: Assume you are an engineer working for a chemical production company. You are on the technical team…

A: A production company, house, studio, or team is a corporation that provides the physical…

Q: Explain the difference between accounting and economic profit. Give two examples of when they…

A: Accounting profit means that profit which is earned after the explicit costs are deducted from…

Q: Our firm produces two products: generators and solar panels. Name five economies of scale you would…

A: The cost advantages that businesses obtain as a result of their size of operation are known as…

Q: Michelle went to Baguio and bought 20 jars of strawberry jam for P3,500.00 with 1 5% discount. When…

A: Profits are earned when the business earns more sales revenue than the cost of sale.

Q: Janet spends $20,000 per year on painting supplies and storage space. She recently received two job…

A: Given  Cost of supply of painting and storage space = $20,000 Janet sells 25 painting per year and…

Q: A firm producing 1000 units at a total cost of $5000, if it were to increase production to 1001…

A: "Input refers to the raw materials, factors of production or resources used in the process of…

Q: Klee Motors is a small car leadership. On average, it sells a car for $24 000, which it purchases…

A: It is given that the firm has a few fixed costs such as the rent which is equal to 60,000 per month,…

Q: What are the types of quantitative and subjective methods used in evaluating and control the…

A: Quantitative procedures are advantageous since they require less time to implement than subjective…

Q: Frank is an engineer who had decided to leave his job making $150,000 per year to brew and sell…

A: Economics is the branch of knowledge in which we study scarce resources and unlimited wants. The…

Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…

A: Accounting profit does not take into account the opportunity cost. Accounting Profit = Total Revenue…

Q: Billy’s Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced.…

A: Output Produced=300 bean bag chairs Output sold=275 bean bag chairs Average cost for each unit…

Q: Devlin is a computer programmer who earned $30,000 in 2011. But on January 1, 2012 he opened a…

A: * SOLUTION :-  Based on the given information the answer is  (a) the Devlin's opportunity cost is =…

Q: A) What should a firm do if it realizes that its marginal revenue is more than its marginal cost? b)…

A: The marginal revenue refers to the additional revenue earned on selling an additional unit of…

Q: Amal quits his job and gives up a salary of $50,000 per year to start software company. During…

A: Economic Profit = Revenue- Cost = 300000-250000 =50000

Q: You own an apartment building with 25 rental units renting at current market rate for $2500 a month…

A: Total revenue = price*quantity

Q: oduced. pany currently produces 1 million tablets and makes a profit of D00, but -f tablets could…

A: * SOLUTION :-    From the given information the calculation as follows.

Q: Danilo and his wife operate a restaurant where they sell all their meals for $14.00 each. The markup…

A: Selling price per meal = $14 Markup price on each meal = $5 Overhead expenses = 19% of cost

Q: You are thinking about opening a business. If you do, you will have to leave your current job, which…

A:

Q: Desmond works as an accountant making $80,000 per year. He is considering leaving his job to open an…

A: After taking into account both explicit and implicit expenses, economic profit is the amount of…

Q: economic profit is smaller than accounting profit because of implicit cost---- a) none of the above…

A: Implicit costs are the ones that are not shown separately even though they have occurred already.…

Q: Last year Bill Bailey quit his $20,000 per year job and invested $200,000 to open the Bargain…

A: Economic profit takes into consideration all revenue items and cost items and also the opportunity…

Q: Bee & flower is a brand that has been established for more than 30 years in China. His hair care is…

A: Different organisations have to keep an eye on different aspects for their sucessful business.…

Q: True or false? d. Accounting profit is smaller than economic profit. e. Total cost divided by output…

A: Accounting profit refers to the excess amount of revenue over the total cost.

Q: You as a businessperson have one million dollars to invest. One option is to invest your money in a…

A: Economic profit means that the profit after reducing the all cost from the revenue during a specific…

Q: year, and the other was for $90,000. However, she turned both jobs down to continue a painting…

A: here we calculate the accounting profits and economic profits by following method

Q: Reggie owns and operates a cheese shop in the village of Somerset. Although Reggie has a degree in…

A: A firm maintains a record of its profit in two ways that are accounting profit and economic profit.…

Q: An web designer quits a project where she was paid $50,000 on completion of the project. She joins a…

A: Economic Profit:Economic profit refers to the profit which obtained by subtracting the opportunity…

Q: Corinne is offered a job with a salary of $70,000, which she turns down to start her own business.…

A: The economic profit accounts for the implicit and explicit costs that are incurred by the individual…

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: Economic profit = revenue - total cost  Total cost = implicit cost + explicit cost  Implicit cost is…

Q: You are the chief financial officer for a firm that sells digital music players. Your firm has the…

A: Average total cost (ATC) is per unit cost which is calculated by dividing the total cost (TC) by the…

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.