Please answer fast I'll rate you sure.. Accounting and Economic ProfitPage 1 of 1Answer each of the following questions and don't forget to indicate the sign (positive or negative).A seller earns $180,000 in total revenue. Their implicit costs of production are $64,000 and their explicit costs ofproduction are $97,000. How much economic profit did they earn?Suppose that a firm produces 800 units a year and sells them all for $100 each. The explicit costs of production are$60,000 and the implicit costs of production are $19,000. How much is the firm's economic profit?Isa is the owner of a fine art gallery. Last year, their total revenue was $80,000, their rent was $2,000, their labor costswere $16,000, and their overhead expenses were $10,000. Isa could earn $11,000 per year working at another nearby fineart gallery. From this information, we know that their economic profit was:

Economic profit is the money left over after all direct and indirect expenses have been paid.…

Answered: Page 1 of 1 Answer each of the…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 1.3P

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48. In calculating economic profits, one needs to account for either implicit or explicit costs. only implicit costs. both implicit and explicit costs. only explicit costs.
Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Your aunt’s opportunity costs comprise * If your aunt thought she could sell $510,000 worth of merchandise in a year, what is your aunt’s accounting profit? *$10,000-$40,000$460,000$0Given the above situation, what is your aunt’s economic profit? *$10,000-$40,000$460,000$0
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Suppose you run a small business in your building and you act also as a manager of your business. If you do not pay yourself a salary and rent of your building what effect will this practice have on the calculation of the firm’s accounting profit? Economic profit? Explain.
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Microeconomic Chapter Eight Distinguish between a firm's explicit costs and its implicit costs and between a firm's accounting profit and its economic profit.
Kindly assist on question 1 and 2 1The difference between zero accounting profit and zero economic profit is that. a) an economic profit of zero indicates a fair return because it includes the opportunity cost of a firms capital. b) an economic profit zero indicates unacceptable rate of return because it does not include the opportunity cost of a firms capital. c) an economic profit of zero indicates more than a fair return because it includes opportunity cost and explicit cost. d) an accounting profit of zero indicates a fair rate of return because it includes the opportunity cost of a firms capital. 2.If a corporation is sued and losses the lawsuit, it's liability to pay. a) is imposed on all stockholders, personally b) is imposed only on the corporate CEO and the board of directors. C) its limited to the assets held in the corporations name. d) is imposed on the bondholders of the corporation
Ball Bearings, Inc., faces costs of production as follows: Quantity (cases) Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 $100 $0 $ 100.00 N/A N/A N/A N/A 1 100 50 $ 150.00 $ 100.00 $ 50.00 $ 150.00 $ 50.00 2 100 70 3 100 90 4 100 140 5 100 200 6 100 360 a. Calculate the company’s average fixed cost, average variable cost, average total cost, and marginal cost at each level of production.
Modified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true. Zero economic profit implies zero accounting profit.
Crawford Computing finds that its weekly profit, in dollars, from its production and sale of x laptop computers is P(x)=-.002x^3-.15x^2+400x-800 Currently, Crawford builds and sells 9 laptops weekly. (a) what is the current weekly profit? (b) how much profit would be lost if production and sales dropped to 8 laptops weekly? (c) what is the marginal profit with x=9? (d) use answers from parts (a) and (c) to estimate the profit resulting from the production and sale of 10 laptops weekly.
W7 Q5 A paper published in the Harvard Business Review points out a new way to calculate economic profit that could be more appropriate for service firms and other people-intensive companies. Instead of focusing on investment and return on investment, the focus is on employee productivity, in terms of both generating revenues and reducing costs. The approach is to first determine economic profit in the conventional way, except that we ignore taxes, so that economic profit is before tax, as follows: Economic profit = Operating profit − Capital charge Assume the following information for a hotel chain that wishes to adopt the new method. The firm has $100 million in operating profit, has $1 billion in investment, and uses a cost of capital rate of 5%, so the capital charge is $50 million and the economic profit is $50 million. Relevant calculations are contained in Part 1 of the following schedule: Part 1: Economic Profit (in thousands, except cost of capital rate) Revenue…
Consider the concepts of accounting profit and economic profit. Suppose you are a consultant and you are meeting with a business owner who is trying to decide whether to keep that business open or open a business in a different industry. Discuss the differences between accounting profit and economic profit and why it should matters in this circumstance.

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