You operate a cafe which generated total revenue was $60,000. Your costs for rent and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a $20,000 a year return. Your economic profit is: a. $30,000. b.$10,000. c.‐$10,000. d.‐$40,000.
Q: Be the production function Q (K, L)) = (K} +213), that depends on the quantities Used from inputs Ka...
A: Given production function Q=89K13 +2L133
Q: IS curve: r = 30.30-0.0015Y LM curve: =Y - 500(r + n°) SRAS curve: Y = Y + 100(P – P°) The nominal m...
A: The IS-LM model describes how aggregate markets for real goods and financial markets interact to bal...
Q: 5. Comerica's Balance Sheet information is given in the table below Assets Liabilities Reserves $75,...
A: Required reserve = r x deposit = 0.25 x 300,000 ...
Q: Assume that there are two firms in the market described by the inverse demand function P(q1,q2)%3D18...
A: Monopoly refers to the market in which a firm charges a different price above the marginal cost. It ...
Q: Nominal Year ČPI Real GDP GDP 1980 $2857.31 82.38 1981 $3207.04 90.93 1982 $3343.79 96.55 1983 $3634...
A: The measure that depicts the final values of goods and services being produced in an economy during ...
Q: Which is NOT needed for the Fed to design and implement effective monetary policy to reduce the seve...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: e in this western province passes laws that make it easy for workers to join a union. Through collec...
A: Equilibrium is achieved at the level where Ls equals Ld
Q: Anecdotal evidence suggests that some insurance companies in Germany advertise specifically to certa...
A: In the insurance market, it can be seen that there is high risk or more probability to have market f...
Q: Discuss the role of the full cost prising principle and profit maximization in modern economic trend...
A:
Q: Which interest rate is most likely to serve as the target interest rate by a Central Bank? a)The...
A: The interest rate which is most likely to serve as the target interest rate by a central bank is the...
Q: (a) Complete the table of Vears Year since 2003 Salary (S) 2003 $39,800 2004 2005 2006 2007 (b) Find...
A: Exponential growth "It is a pattern of data that shows greater increase with passing time, creating ...
Q: uestion Four In the market for kenkey (NORMAL GOOD), consumers’ income has decreased. In that same m...
A: When the consumer income decreases, it decreases the demand for normal good and the demand curve sh...
Q: Suppose that we observe the following change in the international market for USD: USD B D Suppose th...
A: The answer is - a. It would sell USD on the world market, causing the USD to depreciate
Q: Assume at the level of output where MC=MR, a firm experiences TR = $40,000 per week, TFC = $100,000 ...
A: The Total Fixed Cost (TFC) is the summation of all the costs that do not vary with the level of outp...
Q: 2 (a) Why would a firm that incurs losses choose to produce rather than shut down?
A: In a market, there are different situations faced by the firms according to which they make their de...
Q: When it comes to getting a college education, most people consider not O their self-interest; the so...
A: Externality refers to spill-over effect of a good or service on the society.
Q: In Islandia, all goods and inputs are bought and sold at chere is a single price for each product. I...
A: Mix of goods means both factor market and goods market are in equilibrium simultaneously. As per giv...
Q: As a result of an increase in the demand for maple syrup, the price of maple syrup A. remains the sa...
A: A perfect competition market structure is a type of market structure.
Q: a) Discuss advantages and disadvantages when government imposes price ceiling.
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new ques...
Q: One way that Bismarck nations control costs is through government-set prices for care. True False
A: Bismarck model is a health care system where people deposit some fee in a fund for the purpose that ...
Q: Question Three In the market for Corn kenkey (INFERIOR GOOD), consumers’ income has decreased. In th...
A: Here, it is given that Corn Kenkey is an inferior good and there is a change in consumer income as w...
Q: Suppose that the Canadian economy is governed by the following equations Y = Y, - a(r -p)+e; T: = i-...
A: The dynamic Ad As model gives us more knowledge about how the economy works in the long run. The mod...
Q: describe b2b(business to business) in healthcare and provide examples
A: B2B is a technique in which two businesses comes in contact with each other in order to make commerc...
Q: Assume that the graphs show a competitive market referenced in the question below. Select the grap...
A: In a competitive market, equilibrium is achieved at a point where demand curve intersects supply cur...
Q: Coors Company expects sales of $504,000 (5,600 units at $90 per unit). The company's total fixed cos...
A:
Q: how can globalization help daily life of the people.
A: Globalistion is the process of integration among people and the government of different companies.
Q: The IS relation means that the output increase leads to an interest rate decrease. TRUE or FALSE? ...
A: IS curve denotes the relationship between interest rate and output level in the economy.
Q: A manufacturing company purchased 10 years a milling machine for ₽60,000. A straight-line depreciati...
A: The correct answer is given in the second step .
Q: White Oaks Properties builds strip shopping centers and small malls. The company plans to replace it...
A: Given Initial cost or first cost of the equipment P=$750,000 Operating cost =$240,000 per year Salv...
Q: The following graph depicts the daily labour supply curve for Jake, a worker in the construction ind...
A: Upward sloping labor supply curve for jake shows that there is a positive relationship between the w...
Q: The following organization was established in 1953 by Garry Davis and distributed world passports to...
A: World government of world citizens: It provides the opportunity to travel worldwide by providing a p...
Q: (Figure: The Production Possibility Frontiers for Kansas and Wisconsin) Use Figure: The Production P...
A: A production–possibility frontier (PPF), production possibility curve (PPC), production possibility ...
Q: A technology firm has determined that their lowest total cost production technology is $880. If mach...
A: The lowest total cost of production technology is $880 The machines cost is $100 The company has det...
Q: How equalibrum of the frim is useful for the consumers and what does it mean that " By curves of tot...
A:
Q: Suppose there are two countries, the U.S. and Mexico, each producing two goods, computers (C) and av...
A: U.S can produce computer using 1 laborMexico can produce computer using 8 laborsThus, it implies U.S...
Q: The price rose. How would it change the investment: Decrease or Increase? How would it shift the AD ...
A: The aggregate demand curve shows the inverse relationship between the price level and the total quan...
Q: A decrease in money supply growth will cause the: LRAS curve to shift to the left. AD curve to shift...
A: Answer -1 A drop in the money supply is accompanied by a corresponding decrease in nominal output, ...
Q: Suppose the economy of Canada is governed by the following consumption function, investment function...
A: Given information C=300+0.6(Y-T) I=700-80r G=500 T=500 Money demand=Y-200r Money supply=2 P=4
Q: Natural resources are the decisive ingredient in any country's prospects for economic growth. True F...
A: here we state whether the give statement is true or false as given below;
Q: Consider the Swan-Solow model of economic growth. [Hint: Question (e) below goes beyond the subjec...
A: Market analysts by and large concur that economic turn of events and growth are influenced by four e...
Q: Suppose that there are two firms producing a homogenous product and competing in Cournot fashion and...
A:
Q: How Goods Market will be in Equilibrium according to the saving and investment approach?
A: PLEASE FIND THE ANSWER BELOW.
Q: Suppose we have one consumer with a Cobb Douglas utility function for consumption, x, and leisure, R...
A: Cobb Douglas utility function is the functional form of the production function which is used to rep...
Q: passage Drag word(s) below to fill in the blank(s) in the passage. Improving enables a country to ha...
A: The term human capital refers to the economic value of a worker's experience and skills. Human capit...
Q: Consider the Swan-Solow model of economic growth. [Hint: Question (e) below goes beyond the subjec...
A: The units of production method are based on a resource's utilization, activity, or units of goods pr...
Q: O b) When he consumes zero amount of good 2, his MRS12 is equal to 1
A:
Q: Suppose we have one consumer with a Cobb Douglas utility function for consumption, r, and leisure, R...
A: Cobb Douglas utility function for consumption is a particular functional form of the production func...
Q: All Numbers are in S Billion Output Consumption Income Spending Net Taxes 100 Investment Government ...
A: In an economy, unplanned inventory refers to the amount of output gap between the actual output and ...
Q: 2. May purchased a new mobile phone and paid ₱10,000. This means that her marginal utility from this...
A: In a market, marginal utility refers to the amount of satisfaction gained by a consumer when he cons...
Q: QUESTION 28 Fl in the blank using the number that corresponds to the correct word or phrase in the w...
A: The emphasis on opportunity cost, the assumption of maximization in terms of one's own self-interest...
You operate a cafe which generated total revenue was $60,000. Your costs for rent and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a $20,000 a year return. Your economic profit is:
a. $30,000.
b.$10,000.
Step by step
Solved in 2 steps
- What would change if you found a new niche market to sell your product and your sales jumped to $200,000 and your input costs went up to $30,000? What is your accounting profit? Economic profit? Should you stay in business? Would other firms enter into the market? please show work!Explain the concepts of revene, costs, and profitWhich of the following profits represent economic profit? Choose all that apply. a. A restaurant makes $10,000 per month in total revenue. Supplies cost $2,000 per month, and labor costs are $3,000 per month. The restaurant's profit is $5,000. b. During the summer, you make ten go-karts and sell each one for $100. It costs you $200 in supplies You could have made $500 during the summer if you had chosen to deliver phone books. Your total profit is $300. c. A high-end airplane company sells five private jets per year. Each jet is sold for $10 million. The profit margin is 12 percent . If you were to change course and make yachts with the same available resources , you would make no additional profit. d. Your company sells 1, 000 cars per month . Each car costs $20,000 . Your cost for parts is $4 million . Your labor costs are $3 million . Your total profit is $13 million .
- Which of the following profits represent economic profit? Choose all that apply. a. Your company sells 1,000 cars per month. Each car costs $20,000. Your cost for parts is $4 million. Your labor costs are $3 million. Your total profit is $13 million. b. During the summer, you make ten go-karts and sell each one for $100. It costs you $200 in supplies. You could have made $500 during the summer if you had chosen to deliver phone books. Your total profit is $300. c. A restaurant makes $10,000 per month in total revenue. Supplies cost $2,000 per month, and labor costs are $3,000 per month. The restaurant's profit is $5,000. d. A high-end airplane company sells five private jets per year. Each jet is sold for $10 million. The profit margin is 12 percent. If you were to change course and make yachts with the same available resources, you would make no additional profit.The real question is not the ones I posted those are what you need the real question is at the profit maximizing level of production. A)Total revenue will be , and profit will beHere are three fictional restaurants and their costs and revenues during March of 2020: Restaurant Fixed Costs Variable Costs Pandemic Revenues The Peach Pit 110,000 85,000 80,000 Gus' Galaxy Grill 75,000 75,000 100,000 Paddy's Irish Pub 50,000 70,000 95,000 a) For each restaurant, calculate their profits during this difficult month. b) Which restaurant, if any, earned a profit? c) Which restaurants were able to remain in business in the short run? Which were forced to shut down entirely? Why?
- (Scenario: Accounting and Economic Profit) Use Scenario: Accounting and Economic Profit. What is the opportunity cost of Wang's $100,000 inheritance being used to start his business?Scenario: Accounting and Economic ProfitRather than put the $100,000 that his grandmother left him in a mutual fund that earns 5% each year, Tommy Wang quit his job, which paid $60,000 per year, and started Wang's Wicker Furniture Store. He rented a showroom for $20,000 for the year, purchased $60,000 in wicker furniture, and incurred costs of $40,000 for sales help and advertising. In his first year, his revenue was $150,000.Please answer all 4. Financial value of the firm increases when the firm generates economic returns, in the context of its desired social engagement, in excess of its __________. Group of answer choices a. Fixed costs b. Cost of capital c. Variable costs d. Opportunity costs 5. David was having a heated argument with Sue that the business should consider more than shareholders when making it business decisions. David was reflecting Group of answer choices a. Profit maximization b. Stakeholder theory c. The learning curve d. Microeconomics equilibrium 6. In the short run, a firm’s decision to shut down should not take into consideration Group of answer choices a. Fixed costs b. Marginal costs c. Variable costs d. Avoidable costs 7. According to the “Shared Value” article by Porter and Kramer, which of the following is NOT a key principle in developing a shared value approach within a firm? Group of answer choices a. Enabling local cluster…You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $100 and costs $80 to produce. At this production level, what is your total revenue? A. TR = $8,000 B. TR = $80 C. TR = $10,000 D. TR = $100
- Why is it important for managers to understand the mechanics of supply and demand both in the short run and the long run? Give examples of companies whose business was either helped or hurt by changes in supply or demand in the market in which they are competing.You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $100 and costs $80 to produce. You are considering increasing your company's production by one unit, upping the total to 101 widgets. At this level of production, total revenue will increase to $10,100, and total costs will increase to $8,120. What is the marginal revenue and the marginal cost of making this change? A. MR = $10,000 and MC = $8,000 B. MR = $10,100 and MC = $8,120 C. MR = $100 and MC = $120 D. MR = $100 and MC = $80Gloria decided to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $50,000, $60,000, and $70,000. What is Gloria's economic profit from running her own business? Question 5 options: a) -$75,000 b) -$20,000 c) $20,000 d) none of the above
