Please explain whether the following statements are true or false. Question (a) if the owner of a business pays himself no salary, then the accounting cost is zero, but the economic cost is positive. (true or false) please explain Question ( b) A firm that has positive Accounting profit does not necessarily have positive economic profit. ( true or false) please explain Question (c) If a firm hires a currently unemployed worker, the opportunity cost of utilizing the worker’s service is zero.(true or false) please explain

Please explain whether the following statements are true or false. Question (a) if the owner of a business pays himself no salary, then the accounting cost is zero, but the economic cost is positive. (true or false) please explain Question ( b) A firm that has positive Accounting profit does not necessarily have positive economic profit. ( true or false) please explain Question (c) If a firm hires a currently unemployed worker, the opportunity cost of utilizing the worker’s service is zero.(true or false) please explain

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 6PA

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1.Joe quits his computer programming job, where he was earning a salary of $50,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $24,000 per year. In his first year of business he has the following expenses: salary paid to himself, $40,000; rent, $0; other expenses, $25,000. Find the accounting cost and the economic cost associated with Joe’s computer software business.
57: The creation of a unit of good Y requires the work of 3 specialists and 7 units of capital. The going pay is $ 4. The lease on a unit of capital is $ 1. What ought to be the peripheral actual result of capital all together for the creation to be completed basically cost and what is this cost if the minimal actual result of work is 2?
Question 2 2a(I) A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1000. The cost of capital is $3000 and it is fixed, which mean that it does not vary with output. The company is currently producing 240 snowboards. The company’s cost will be $13,500 if it produces ab additional snowboard. A customer is willing to pay $500 for the 241st snowboard . Should the company produce and sell it? Yes/No Explain
Question 2 The economic cost of education of a student is the summation of all the economic cost of the resources used by the student in order to obtain his or her education. This includes the time the student dedicates to study. Consider Juana’s case. Her tuition is $32,000.00 per year; Juana works part time on a Bookstore and receives $10,000.00 a year for it; if she were going to drop out of college and work full time, Juana would receive $22,000.00 a year. The economic cost of Juana’s education (per year) is? $12,000.00 $42,000.00 $54,000.00 $44,000.00 $32,000.00
Question 5 The measure of the cost of a particular good in terms of what is given up to produce that good is called an explicit cost. an opportunity cost. a necessary cost. a dollar cost. a fixed cost.
12. Which of the following statements about direct and indirect costs is/are likely to be true? Note: multiple answers possible. Group of answer choices Whether a fixed cost is classified as direct or indirect cost depends on whether the level of production is within or outside the relevant range. Reliability of cost data is usually enhanced with more, rather than less, direct cost categories With the right allocation base, the assignment of indirect costs to a cost object will typically be more accurate than the assignment of direct costs to the same cost object While each indirect cost item would have one or more cost drivers, direct cost items do not typically have a cost driver.
Return to the problem explained in Table 7.13 and Table 7.14. If the cost of labor remains at 40, but the cost of a machine decreases to 50, What would be the total cost of each method of production? Which method should the firm use, and why?
Question 21.21. Which would be an implicit cost for a firm? The cost of worker wages and salaries for the firm. paid for leasing a building for the firm. paid for production supplies for the firm. of wages foregone by the owner of the firm.
11- Al Shaihani is a halwa manufacturer which is famous for Omani Saffron Halwa. They wanted to increase their supply of halwa for the coming month of August 2021. However, due to COVID-19 Pandemic, the only available resources they could change are the number of their workers. Determine which type of production period Al Shaihani business is facing? a. Long run b. All of these c. Short - run d. Mid-run
1. Definition of economic costs Yakov lives in San Diego and operates a small company selling bikes. On average, he receives $694,000 per year from selling bikes. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $392,000. He also pays several utility companies, as well as his employees wages totaling $289,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $2,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Yakov does not operate the bike business, he can work as a programmer and earn a yearly salary of $20,000 with no additional monetary costs, and rent out his storefront at the $2,000 per year rate. There are no other costs faced by Yakov in running this bike company. Identify each of Yakov’s costs in the following table as either an implicit cost or an explicit cost of selling bikes. Implicit Cost Explicit Cost…
4 The higher labour costs under skilled-based pay indicate that it may be a better fit to companies where _____________. labour costs are a small share of total costs labour costs are a large share of total costs employees lack motivation to increase their skills employees focus on seeking promotions to earn more pay the focus is on average performance rather than optimum performance
Question 2 A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000.00. the cost of capital is $3000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company’s cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. Should the company produce and sell it? Timothy quits his job which pays $84000 a year, to enrol in a 2-year graduate programme. His annual school expenses are $58000 for tuition, $9500 for books and 3600 for food. What is his opportunity cost of attending the graduate program? A motor vehicle assembly plant requires the use of both capital and labour. the telsa manufacturing plant is considering increasing the number of workers to increase production. Does diminishing returns hold in this scenario yes/no? explain. Explain how each of the following situations would affect…