Rafael quit his job paying him $74,000 per year to be a consultant. Last year he started a business for which he spent $7,000 on Google and Facebook advertisements and paid himself $75,000. Based on this information, what were his economic cost of this new business
Q: What are economic costs? Group of answer choices Any contractual obligation that results in a flow…
A: The economic cost is the mix of misfortunes of any merchandise that has a worth joined to them by…
Q: regarded as costs by accountants but not by economists. B. payments that a firm makes to other firms…
A: Economic profit= total revenue- total cost
Q: If a person starts their own business, one implicit cost is the loss of a steady salary from leaving…
A: This statement is True Implicit cost is the opportunity cost of the foregone alternative which is…
Q: You are the chief financial officer for a firm that sells digital music players. Your firm has the…
A: Marginal cost: It is the cost of producing an extra unit.
Q: Refer to the accompanying table below. The marginal cost of the 3'd unit of this activity is: Units…
A: Marginal cost refers to an increase in total cost because of one more unit of output.
Q: For the last ten years, the Universal Company has produced an average of 100 units per hour, 25…
A: Ans in step 2
Q: Abdullah has his own Auto Shop and produces one type of service. He spends 250 KD a month to rent a…
A:
Q: Riley runs a successful restaurant chain. However, she is running into a problem whereby some of her…
A: Answer: It is given that where the kitchen staff gets a higher salary there is no shortage of staff…
Q: Imagine you own your own business. Based on what you learned from the simulation, what factors would…
A: The firms total costs are equal to the sum of its variable costs and fixed costs. Fixed costs are…
Q: When marginal cost exceeds average total cost, which of the following must be true? Question 14…
A: Costs are the expenses that a firm incurs in the form of the purchase of inputs to produce goods and…
Q: Economics Complete the table below. (Round your answers to two decimal places.) Capital, Labor, K L…
A: Fixed cost remains same at all levels of output. Variable cost is the cost that changes as output…
Q: Identify and describe three examples of economies of scale and three examples of diseconomies of…
A: Companies benefit from economies of scale as their production becomes more productive. Economies of…
Q: Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into…
A: Costs are the expenses that firms incur in the production of goods and services. A firm can incur…
Q: Refer to the graph shown above. Based on the information illustrated in the graph, which of the…
A: Answer - Need to find- Correct option - Given in the question-
Q: Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s…
A: Given, In the coffee shop, there are 3 workers and 1 coffee machine. If there is an increasing…
Q: Superconductor technology is becoming a widespread and indispensible component of the machines we…
A: Given, Superconductors play a vital role in the manufacturing of machines. They are found in each…
Q: You are tasked with installing 25 industrial welding robots. It took you 15.5 hours to install the…
A: please find the answer below.
Q: Select choices which are true about Total Costs. (Select all that apply.) Question 38 options:…
A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…
Q: Use the cost table below to find the following marginal costs. Output quantity Total variable cost…
A: Marginal cost is the additional cost incurred from producing an additional unit of output.
Q: You sell homemade candles online for $50 each and you hire your family members to make the candles.…
A: Break even quantity is the quantity at which total revenue = total cost. Where total revenue = 50q
Q: Andie is considering leaving her job as attorney to pursue her passion by starting a dog grooming…
A: Economic Costs is always considered to be the sum of accounting cost and opportunity costs.
Q: Economists describe short-run decisions as "constrained" decisions, while long-run decisions are…
A: The factors of production are the factors that are being used in the process of production by the…
Q: Which of the following would be the best starting point on which to focus if an air conditioner…
A:
Q: Copy the table below into your answer booklet and fill in the missing figures: output total cost…
A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…
Q: How would the long run total cost curve change if the price of capital increase? Explain your answer…
A: Long run total cost curve show the total cost of optimal choice of combination for labor and capital…
Q: Q47 In the long run, the law of diminishing marginal returns... a. Sometimes holds, depending on…
A: Option E Law of diminishing marginal returns shows that when an additional unit of production is…
Q: The following is cost information for the Creamy Crisp Donut Company Entrepreneur's potential…
A: Explicit Costs or the Accounting Costs refer to the actual monetary payments made during course of…
Q: The Principle of Diminishing Marginal Returns states that adding one more unit of input, say,…
A: We are going to learn a concept known as Diminishing marginal returns.
Q: Suppose that the Law of Diminishing Returns sets in immediately (that is, there is no range of…
A:
Q: Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s…
A: When the variable factors of production-those whose count can be increased or decreased are employed…
Q: Imagine you are running a business that processes horticultural product, and is currently producing…
A: 1) This offer will be accepted as the total revenue is greater than the total variable cost.
Q: Dina is working for a consulting firm making $60,000 per year but considers starting her own…
A: Implicit cost refers to the cost which is incurred but can not be seen. It is the opportunity cost…
Q: “The legal sector has been among the fastest to race back to the office this year. Amid a rise in…
A: Corporate culture Corporate culture stands for attitude and practices that determine how the…
Q: A toll road commission is planning to locate garages for tow trucks along a 94-mile circular…
A: Given: Overall circumference (P) = 94 Cost of transportation (t) = 47 Fixed cost (F) = 4500…
Q: A fixed input is one: Select one: a. that can never produce more or less in any period. b. that only…
A: In a broad sense, there are two types of inputs (factors) used in the production i.e. fixed input…
Q: uppose that you are the manager of a company that vaccinates human beings for biological diseases.…
A: Given: Physician costs= $500 per day (for an annual salary of about $175,000) The daily cost for the…
Q: What is correct about the relation between the production function and costs? Question 10…
A: The correct answer is given in the second step.
Q: Suppose that in 2018, you inherited from your grandfather a small planetarium that had been closed…
A: A small planetarium has been inherited by a person from his grandfather in the given problem. The…
Q: Answer the following: If TVC = $80 and AVC = 4, then what does quantity (Q) equal? (b) If…
A: Total cost = TFC + TVC AVC = TVC/Q AC =TC/Q MCn=TCn -TCn-1= change in TC/change in Q AFC = TFC/Q
Q: Complete the following table and answer the short discussion question Marginal Cost (MC) Total…
A: The total fixed cost (TFC) is the cost incurred when the output production is zero. Therefore, at…
Q: please pick an example of three types of costs that a business can incur and briefly explain whether…
A: Fixed Costs are those costs that remain constant at all levels of output. Variable Costs are those…
Q: which requires labor hours along with time on two machines. Producing a unit of trash cans requires…
A:
Q: Discuss Factor Abundance, and Economies of Scale In detail.
A: The resources in any economy are limited or scarce. The resources have many alternative uses due to…
Q: Question 21.21. Which would be an implicit cost for a firm? The cost of worker wages and…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Firms are facing a lot of challenges when dealing with their costs of production. Analyze a fixed…
A: Fixed cost refers to the cost of production that the firm has to incur irrespective of output. This…
Q: I need help with econ multiple hw questions asap! 50)Refer to the attached Figure 16. Which of the…
A: (50). Average variable cost is a part of average cost. Average variable cost goes on increasing.…
Rafael quit his job paying him $74,000 per year to be a consultant. Last year he started a business for which he spent $7,000 on Google and Facebook advertisements and paid himself $75,000. Based on this information, what were his economic cost of this new business?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You own a farm that requires spending of $93,318 to generate $275,393 per year. You discover that your farm is sitting on top of an oil-field that could generate $150,186 per year. Your economic profit of continuing to farm on the land is: (your answer must be rounded off to the nearest dollars, i.e., no decimal placesSuppose that in 2018, you inherited from your grandfather a small planetarium that had been closed for several years. Your planetarium has a maximum capacity of 75 people and all the equipment is in working order. You decide to reopen the planetarium on the weekends as a new laser-tag venture called Shoot for the Stars, and much to your delight it has become an instant success, with admission tickets selling out quickly for each day you are open. Describe some of the decisions that you must make in the short run. What might you consider to be your “fixed factor”? What alternative decisions might you be able to make in the long run? ExplainIs this a good example of a sunk cost? Why or why not? “As an entrepreneur, advertising your product correctly is the most crucial thing. As I started my small business at the beginning of the year 2019, I had put around $400 in ads through Instagram and Facebook but wasn’t getting results. I had a low engagement, few clicks, and no sales during the start of my business. “
- “The legal sector has been among the fastest to race back to the office this year. Amid a rise in vaccinations, occupancy rates for law firms are back up to 56%, compared with 34% of sectors nationwide, according to data from Kastle Systems. Yet the industry is facing an unlikely revolt. Many associates have grown accustomed to working from home. They say they've been just as productive, if not more so, claimed back time for themselves and their families, and want to choose how they work.” Chen,T (2021) Covid-19 Threatens to Blow Up Law Firms' Intense Office Culture -- for Good Dow Jones Institutional News New York Following the Covid-19 pandemic, many firms have transitioned into using a hybrid work model, allowing their employees to split time between working from home and working in the office. In the long run, the share of employees working from home is expected to settle at around 15% as compared to 2% before the pandemic. Required: What are the potential effects of working…. If economic profit equals accounting profit, what do implicitcosts equal?Imagine you own your own business. Based on what you learned from the simulation, what factors would determine your entry and exit into a market? Applying the concept of marginal costs, how would you, as a business owner, decide how much to produce? How does the impact of fixed costs change production decisions in the short run and in the long run? Refer to the average total-cost (ATC) model included in the textbook to demonstrate.
- Assume you are an engineer working for a chemical production company. You are on the technical team that is responsible for deciding what to do about the dangerous chemical that your company is using to produce its best-selling chemical product. Recent reports have just made known the dangers of this chemical, and the company now needs to decide how to proceed. There are several options to consider: stop producing the harmful product altogether and take a hit on total profits; continue to make the product and sell it, like nothing's wrong, since the federal government has not cracked down. You could also spend money and engineering efforts in R&D to develop a safe chemical that would take its place. There is no guarantee that this would happen any time soon, but the scientists think it is realistically possible. To make matters worse, your biggest competitor produces this harmful product off-shore and is not hampered by the US regulations. If you stop producing this product…you have been working as a manager of a fashion store. You saved 50,000 and you decided to use the money to start your own business, You decided to use the money you saved to buy materials, you als decided to utilize a store you own to home your business. The store you used for your business could have been rented for 8,000 a year. You hired a clerk to help you in the store that will cost you 20,000 per year. The interest you could have earned on the 50,000 you used to buy the materials was 3,000 per year. Futhermore, you decided to manage your own business and you decided to quit your job that was paying 28,000 per year . You paid 8,000 for utility. What is yor explicit cost? Assume that your total sale for the year was 160,000. What is your implicit cost, what is the accounting profit? what is your economic profit?If a person starts their own business, one implicit cost is the loss of a steady salary from leaving a job. true false The average cost and marginal cost are always the same. true false
- Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. Which of the following statements is true? Tom earns an accounting profit of $35,000. Tom has an opportunity cost of $41,000. All of these are true. Tom experiences an economic loss of $6000.if economic profit equals accounting profit, what do implicit cost equal?Imagine you own your own business. Based on what you learned from the simulation, what factors would determine your entry and exit into a market? Applying the concept of marginal costs, how would you, as a business owner, decide how much to produce? How does the impact of fixed costs change production decisions in the short run and in the long run? Refer to the average total-cost (ATC) model included in the textbook to demonstrate. Have at least a few sentences for each response please.