Which of the following is correct?economic profit + implicit costs = accounting profitimplicit costs + explicit costs = economic profiteconomic profit - accounting profit = explicit costsaccounting profit + economic profit = normal profit

Economic Profit is the difference of between the total revenue and total cost of all the inputs.…

Answered: Which of the following is correct?…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 2MC

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Zubair purchases material by Rs. 20,000 per year and pays R. 10,000 for storage space. He recently received two job offers from a famous marketing firm—one offer was for Rs. 250,000 per year, and the other was for Rs. 190,000. However, he turned both jobs down to continue his business. If he sells 50 units of his product per year at a price of Rs. 10,000 each: a. What are her accounting profits? b. What are her economic profits?
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.
Distinguish between implicit and explicit costs. How is it possible to havepositive accounting profit and negative economic profit concurrently?
Distinguish between implicit and explicit costs and give examples of each. In addition, explain how explicit and implicit costs affect the distinction between economic profit and accounting profit. What explains the distinction between the two measures of profit?
(Alternative Measures of Profit) Calculate the accounting profit or loss as well as the economic profit or loss in each of the following situations: A firm with total revenues of $150 million, explicit cost of $90 million, and implicit costs of $40 million A firm with total revenues of $125 million, explicit cost of $100 million, and implicit costs of $30 million A firm with total revenues of $100 million, explicit cost of $90 million, and implicit costs of $20 million and A firm with total revenues of $250,000, explicit cost of $275,000, and implicit costs of $50,000 please i'd like to see the steps who we get the answers so i understand thank you so much :)
Mike spends RM35,000 per annum on painting supplies and storage space. He recently received two job offers from a famous marketing firm – one offer was for RM 95,000 per year, and the other was for RM 105,000. However, he turned both jobs down to continue a painting career. If Mike sells 20 paintings per year at a price of RM 8,000 each: Question 1: What are his accounting profits? Question 2: What are his economic profits?
True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be recovered bycurrent decisions.2. It is possible for the economic profit and accounting profit to be equal to one another.3. If Ed<1, an increase in price leads to higher revenue.4. In the long run, at least some of the inputs should be variable.5. Production is a transformation of resources in to goods and services.
What costs and revenues do economists include when calculating profit that accountants don’t include? Economists and accountants calculate profit with the same costs and revenues. The only difference is that economists work with predicted costs and revenues for the future, whereas accountants work with costs and revenues from previous years. In addition to the explicit costs and revenues used by accountants, economists include all implicit costs and revenues when calculating profit. This means that they include opportunity costs and changes in the value of any assets owned by the firm. In addition to the implicit costs and revenues used by accountants, economists include all explicit costs and revenues when calculating profit. This means that they include labor costs and changes in the value of any assets owned by the firm. In addition to the explicit costs and revenues used by accountants, economists include all implicit costs and revenues when calculating…
Accounting profit is total revenue less by Select one: a) Implicit costs only b) Implicit and Explicit costs c) None of the answers are correct d) Oppurtunity Costs e) Explicit cost only
Anthony quit his job where he was earning an annual salary of $48,000 to open his own business. Annually, he will pay $18,000 for rent, $120,000 for wages, $36,000 for raw materials. If he receives annual revenue of $230,000, then his accounting profit will be _____ and his economic profit will be _____. a negative; negative b negative; positive c positive; negative d positive; positive
Tom runs a shoe-shine stand at the airport. Tom has no skills, no job experience, and no alternative jobs. Entrepreneurs in the shoeshine business earn $13,000 a year. Tom pays the rent of $3,000 a year and his total revenue is $16,000 a year. He borrowed $1,000 at 25 percent a year to buy equipment. At the end of one year, Tom was offered $700 for his business and all its equipment. Calculate Tom’s annual explicit costs, implicit costs, and economic profit.
Define and explain the differences between accounting profit and economic profit.

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Which of the following is correct? economic profit + implicit costs = accounting profit O implicit costs + explicit costs = economic profit economic profit - accounting profit = explicit costs accounting profit + economic profit = normal profit