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Show the effect of a 25% profit tax on the accounting profit of all firms in a competitive industry. Consider all time periods.
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- The difference between economic profit and accounting profit is equal to: zero implicit and explicit costs. implicit and explicit revenues. implicit revenues minus implicit costs.Suppose a firm has the following expenditures per day: $250 for wages and salaries, $50 for materials, $60 for equipment, and $40 for rent. The market wage for the manager is $120 per day but the owner-manager does not draw a salary. Assume the daily revenue is $420. What is the accounting profit for the firm described above? Just give equation formula.According to the data from a company, the marginal revenue of a product (in billions of dollars per year) is approximated by 3.94 + 0.06x + 0.012x^2 , where x = 0 corresponds to 1987. what was rhe total revenue from the beginning of 1998 through the end of 2004?
- Entrepreneurs are the residual claimants at their respective firms. This means that they: a. Only get paid if there is any money left over after all the other factors of production have been paid. b. Must bear the financial risks of running their firms. c. Receive whatever accounting profits or losses their firms generate. d. All of the aboveConsider a firm that uses capital and labor as inputs and sells 5,000 units of output per year at the going market price of $10. Also assume that total labor costs to the firm are $45,000 annually. Assume further that the total capital stock of the firm is currently worth $100,000, that the return available to investors with comparable risks is 10 percent annually, and that there is no depreciation. Calculate the economic profit and accounting profit of this firm? Explain your answer.?When firm must pay a tax proportional to the number of items it produces: fixed cost of production will [increase, decrease, remain the same] , marginal cost of production will ["", "", ""] , average cost of production will ["", "", ""] .
- Find the value of explicit cost of the firm if the revenue generated is $8000 and the accounting profit is $5500When firm must pay lump sum tax (which is a fixed sum, independent of whether it produces any output): fixed cost of production will [increase, decrease, remain the same] , marginal cost of production will [increase, decrease, remain the same] , average cost of production will ["", "", ""] .A financial department of a company has arrived at the following Cost and price function.
- Padico , Inc., has struggled to meet projected revenues for each of the past ten quarters. The firm hired Mark Adams to design a control system and offer suggestions to improve the firm's performance. Which of the following is a key activity that the proposed control system should perform? a. performance measurement b. corporate governance c. organizational structuring d. organizational planning Clear my choiceQ1: Normal profit is a term for explicit profit the competitive rate of return the accounting profit forgone pure economic profit Q2: Which of the following items is most likely to be an implicit cost of production? the "competitive rate" salary the owner of the business pays herself for services provided property taxes on a building owned by the firm rental payments for a building utilized by the company and rented from another party the interest income foregone on the equity capital invested by ownersGive the area that represents the following Total CostTotal Variable CostTotal Fixed CostTotal RevenueProft/Loss Area