Why do economists classify normal profits as costs? O A normal profit is the amount required to ensure continued supply of the product. O Normal profits have elements of revenue and cost. OA normal profit has to be paid to the IRS. Normal profits cannot be counted as revenue.
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A: Implicit cost is the foregone income that could have been earned if resources were invested…
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A: "Since you have asked multiple parts, we will answer only the first part for you. If you have any…
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A: Households incur certain costs of living in a house.
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A: A Profit maximizing firm, try to operate a business for which it gets the return and to operate the…
Q: QUESTION 4 Marginal cost is the: O A. rate of change in total fixed cost that results from producing…
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A: a. Ending inventory = No. of Units in Ending Inventory x Cost per unit June 1 = 2 x 272 = $544 July…
Q: 51. Output Total Revenue Total Cost $0 $25 1 $30 $49 2 $60 $69 $90 $91 $120 $117 $150 $147 $180 $180…
A: Total Revenue is the sum of total value received by selling all the units of output. Total Revenue…
Q: 28 - : Total variable cost of firm X is 100 and total fixed cost is 20 TL. The firm produces 40…
A: The process of production uses various inputs and converts them into finished goods using production…
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A: Answer: Economic capacity: it refers to the maximum amount of production a form or economy can do by…
Q: 2. A small-scale manufacturer can sell q number of units of each product produced per week at a…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: yearly fixed cost in dollars? what is Gita's yearly variable cost in dollars? what is Gita's yearly…
A: Accounting profit, also referred to as bookkeeping profit or financial profit, is net income earned…
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A: Accounting profits are the profits made by the firm by producing and selling products. It is the…
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A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: 4. The average variable costs of a company are equal to $20 per unit produced at its current level…
A: Variable cost per unit produced=$20Fixed cost per unit produced=$30Total cost at this level=$2500
Q: 1. The cost-revenue data for a manufacturing company Item Cost or Revenue Selling price $85/unit…
A: The average cost is the per-unit cost which is calculated by taking the ratio of the total cost to…
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A: The total cost incurred to produce a certain product or a service is called the cost of production.…
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A: Required Q=30, w=10 r =50
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A: Costs which are fixed in short run is called fixed cost.
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A: Answer to the question is as follows:
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A: Variable costs and fixed costs together sum up to obtain total costs.
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A: Economic losses occurs when the total cost exceeds total revenue.
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A: The average cost is the cost that is calculated by the dividing sum of fixed and variable cost by…
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A: Below is the given values:
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A: Since you have posted multiple questions, we are answering the first one for you. If you want a…
Q: 2. As a general rule, when accountants calculate profit they account for explicit costs but usually…
A: There are broadly two kinds of profits. Accounting profit and Economic profit. Profit as we know is…
Q: and ideas. O
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A: Explicit costs are those cost that is incurred out-of-the-pocket by the firms. This implies explicit…
Q: Marginal cost can be improved by taking which of the following steps? O a. Reducing fixed costs. O…
A: Marginal cost is the cost of additional unit that is produced by the firm.
Q: Quantity Total Revenues Explicit Costs Implicit Costs 4. 50 40 10 75 67 15 6. 100 100 20 7. 125 132…
A: Accounting profit = Total Revenue - Explicit costs
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Q: 6. Let p(x) = 4 – 0.0002.x be the price (in TL) of each unit of a certain product required to…
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Q: =tu1et10r.07.099 ● Question 18 of 20 Which of the following statements is true? O a. When marginal…
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A: Implicit cost: It is an expense that has effectively happened however not appeared or detailed as a…
Q: 25 - Suppose that the firm's only variable input is labor. When 50 workers are used, the average…
A: In the short run, at least one factor of production of the firm is fixed while others are variable.…
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A: Total Revenue refers to the sum of all the revenues received in the sale of all the goods that are…
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- 1. Suppose Firm A has a budget of P1.5 million pesos in outsourcinginputs, labor and machines, that would lend support in its 1 yearoperation. Suppose further that the cost of labor for 1 year is P150,000and for a machine is P200,000. If it decides to hire 6 laborers, howmany machines would it accept?c) What is the monthly profit or loss if the company stays with Clunker and sells 90,000 bags per month? The monthly profit or loss if the company stays with Clunker and sells 90,000 bags per month is $enter your response here. (Round your response to the nearest dollar and include a minus sign if necessary.)1. Throughout this course, we have solved many optimization or profit maximizing problems. a. State the rules used for unconstrained (regular) optimization and for constrained optimization. b. Using your own words, explain the rationale behind each stated rule as if you were explaining them to someone who has not yet completed this course: c. What doe economist mean when they use the term marginal? d. State how to compute Profit and explain how account profit and economic profit provides different insights to a firm’s current operations.
- 2. As a general rule, when accountants calculate profit they account for explicit costs but usually ignorea. certain outlays of money by the firm.b. implicit costs.c. operating costs.d. fixed costs.It’s time to get a new laptop that is $2500. If you save up for it each month it will take one year in an account that earns 5% annual interest. (A)How much would you have to put aside each month to have enough for it? (B)What are the total acquisition costs of saving up for the laptop? answer it using the annualize percentage change formula1. What are the difference between Direct Method Cash flow withthat of indirect method cash flow, apply them in a given example
- During the month of July, your company makes $12,000 in total sales. Supplies cost you $3,000, and you pay your employees $4,000. What are your total accounting profits? a. $4,000 b. $5,000 c. $12,000 d. $7,000Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 20,700 Oct. 31 Finished goods X 31 Direct materials 90,100 31 Direct labor 172,700 31 Factory overhead X Finished Goods Oct. 1 Balance 12,200 31 Goods finished 306,100 If the balance of Work in Process on October 31 is $205,900, what was the amount of factory overhead applied in October? a.$172,700 b.$90,100 c.$399,300 d.$228,5005d What is the relationship between accounting profit and economic profit? Which is relevant for a firm’s decision to continue production and why? Give examples as to what may cause a divergence between accounting and economic profit
- 1. Direct laborrate: $15.00perhour Production material: $375 per 100 items Factory overhead: 125% of direct labor Packing costs: 75%ofdirectlabor Desiredprofit: 20%oftotalmanufacturing cost use the above information to answer how many units must be sold to achieve a profit of $25,000? [Note that the units sold must account for total production costs (direct and overhead) plus desired profit. 2. A small textile plant was constructed in 2004. The major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2014 if the index for this type of equipment has increased at an average rate of 12% per year for the past 10 years. Show work and Select the closest answer. a) $4,618,000 b) $10,623,000 c) $14,342,000 d) $ 14,891,000True/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.2. A small-scale manufacturer can sell q number of units of each product produced per week at a price of (18 – 0.02q) pesos. It costs P8 to make each unit of the product. The fixed cost associated with producing and selling the product weekly is P450. Determine: a. The TR, TC and profit Function. b. Production level to break-even. c. Production level to maximize profit. d. Maximum profit at this level. e. Interpret the meaning of the two break-even points.