Gita is an auto mechanic and runs a smallrepair shop. She hires one mechanic at$20,000 per year, pays a monthly rent of$5,000 towards the lease of the premiseswhere her repair shop is located, andspends $20,000 per year on materialsneeded for repairing cars and trucks.She has invested $40,000 of her ownsavings in heavy equipment (air and strutcompressors, brake lathes, heavy-duty liftsetc.) that could earn her $4,000 per year ifinvested elsewhere. She has been offered$40,000 per year by a competitor to work asa mechanic for them and she estimates thevalue of income she could earn in her sparetime to be $5,000. The repair shop's totalannual revenue is $250,000. What is Gita'syearly fixed cost in dollars? what is Gita'syearly variable cost in dollars? what is Gita'syearly explicit cost? what is Gita's yearlyimplicit cost? what is Gita's accountingprofit? and what is Gita's yearly economicprofit? and finally is Gita making the bestuse of her resources (time and money) interms of economic profit?

Accounting profit, also referred to as bookkeeping profit or financial profit, is net income earned…

yearly fixed cost in dollars? what is Gita's yearly variable cost in dollars? what is Gita's yearly explicit cost? what is Gita's yearly implicit cost? what is Gita's accounting profit? and what is Gita's yearly economic profit? and finally is Gita making the best Use of her resources (time and money) in

yearly fixed cost in dollars? what is Gita's yearly variable cost in dollars? what is Gita's yearly explicit cost? what is Gita's yearly implicit cost? what is Gita's accounting profit? and what is Gita's yearly economic profit? and finally is Gita making the best Use of her resources (time and money) in

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 42P: A small company that shovels sidewalks and driveways has 100 homes signed up for its services this...

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