Your friend is thinking about opening a wine bar. He estimates that it would cost $400000 per year to rent the location and buy the stock. In addition he would have to quit his $120000 per year job as an accountant. Suppose your uncle thought he could sell $500000 worth of wine in a year. Which statement is true? Total cost of running the wine bar is $520000 and he should not open the wine bar since his economic profits will be negative. His economic profits are $120000 because that is what he could earn as an accountant Total cost of running the wine bar is $400000 and he should open the wine bar since his economic profits would be $100000. His accounting profits are $100000 which is enough to make the wine bar worth opening

Q: You are analyzing a new company’s records projecting their profits using a marginal profit function,…

A: We are going to use marginal approach to answer this question.

Q: A firm faces the following costs: total cost of capital = $1,000; price paid for labor = $12 per…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Rising short-run average variable costs of production for a firm indicate that   Question 4 options:…

A: Average variable costs are the costs incurred on variable factors or inputs per unit of output. The…

Q: A. Will you invest a project that requires a $ 200,000 today and returns $50,000 at the end of the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Q2. Suppose a management accountant of a manufacturing company give you the following information: -…

A: Answer: Given, Price (P) (in OMR) Quantity (Q) (units per month) 1000 (P1) 175 (Q1) 1800 (P2)…

Q: What is the price?  to make it breakeven

A: Average cost is total cost divided by total production while marginal cost is the change in total…

Q: Economists at Jensen Enterprises used time-series data to estimate the following total cost function…

A: TC(total cost) is the sum of TVC(total variable cost) and TFC(total fixed cost). AC(average cost) is…

Q: During the last few days the Superior Company has been running into problems with its computer…

A: Some basic concept of cost theory are  Total cost TC = total fixed cost FC+ variable cost VC.…

Q: Your local pet café has the following costs: $3,000 per month in rent, $5,000 per month in wages,…

A: Firms operating in a market incur fixed costs and variable costs. Fixed costs are the costs that do…

Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…

A: The opportunity cost refers to the value or cost of the next best alternative among all available…

Q: Luis has a factory that produces construction tools in CDMX. Knowing that your marginal cost…

A: The firm produces output in the form of the various goods and services which has various costs…

Q: What is the difference between economic costs and accounting costs? Explain it in your own words and…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Green Gardens Berry Farms is facing some harvesting decisions in order to decide how many ton…

A: Each firm in any organization is driven by profit motive. Profit is nothing but the difference…

Q: The process for renewing a driver's license at the Archer County Courthouse is as follows. First,…

A: Labor economics: Labor economics aspects try to comprehend the working and elements of the business…

Q: A manufacturing company leases a building for $110,000 per year for its manufacturing facilities. In…

A: A firm's profit refers to the portion of its total revenue left over after all of its expenses have…

Q: Question 1: Given the following cost function: TC = 1500 + 15Q – 6Q 2 + Q3 i. Determine the total…

A: i) TC = 1500 + 15Q – 6Q2 + Q3 Fixed part is that part of the total cost which is always constant.…

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: Answer: Normal profit: normal profit occurs when the value of economic profit is zero. Economic…

Q: A company finds that at an output level of 9 units, its total cost is $1700 and at an output level…

A: Given information is: Total cost of 9 units: $1700 Total cost of 10 units: $2000 To find: Value of…

Q: QUESTION Sahar is analyzing the probability to open her own beauty salon. If she chooses to operate…

A: Answer - Given in the question - Rent = Rs 70,000 PM  salary of staff = RS 30,000 pm  Earning = RS…

Q: Imagine you are running a business that processes horticultural product, and is currently producing…

A: 1) This offer will be accepted as the total revenue is greater than the total variable cost.

Q: A division of a company produces income tax apps for smartphones. Each income tax app sells for $7.…

A: *ANSWER :-

Q: If Mark produces five pairs of shoes, his total costs are   a. $400 b. $370 c. $360 d. $320

A: Total cost is the sum of fixed cost and variable cost.

Q: For the following cost function TC = a + bQ – cQ2 + dQ3, determine the equations for TFC, TVC, AFC,…

A: Given: The cost function is:  TC = a + bQ - cQ2 + dQ3 To Find: The equations for TFC, TVC, AFC, AVC,…

Q: Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per…

A: Opportunity cost is the cost that a person faces due to his decision of giving up one good for…

Q: The following is cost information for the Creamy Crisp Donut Company LL Entrepreneur's potential…

A: Normal profit is the part of total cost which represents foregone income, that is income that could…

Q: Ace Manufacturing produces 1,000 hammers per day.  The total fixed cost for the plant is $5,000 per…

A: Average fixed cost is the fixed cost divided by units of output. Average variable cost is the total…

Q: Total costs increase from $1,500 to $1,800when a firm increases output from 40 to50 units. Which of…

A: With MC is constant then it means that that the cost of producing each 10 units is same. Therefore…

Q: Heller Manufacturing has two production facilties that manufacture baseball gloves. Production costs…

A: The weekly cost function of the Dayton Plant is, TCD(X) = X2-X+6 The weekly cost function of the…

Q: It costs a firm C(q) to produce q units of output. If C(q) = q° – q² what kind of returns to scale…

A: Given  Cost function  C(q)=q3-q2  To know the return to scale of of production technology, we need…

Q: Antoine rents rooms in his hotel for an average of $100 per night. The variable cost per rented room…

A: it is given that, Antoine rents a room for $100 per night. variable cost per rented room is $20.

Q: You are the owner of a small company that makes laptops at the price of $550. Your variable cost of…

A: The number of laptops can be found by equating price and the cost of producing laptops. We will find…

Q: Q61 If a firm's total fixed costs are $100 and average variable costs are constant regardless of…

A: Let the constant average variable cost be $10 The total fixed cost be $100 Output TFC AFC…

Q: Use the table below to answer the next three questions. The below table displays the production…

A: Introduction: Fixed Cost- The cost of production which does not change with the increase in the…

Q: n 1997, researchers at Texas A&M University estimated the operating costs of cotton gin plans of…

A: Total cost:C(q)=0.023q2+21.8q+326Total revenue:R(q)=Price*quantityR(q)=70qTotal…

Q: Joe quits his computer programming job, where he was earning a salary of $60,000 per year, to start…

A: Here we calculate the economic and accounting profit of Joe by using the given information so the…

Q: You are considering opening a copy service in the student union. You estimate your fixed cost at…

A: Given: Total fixed cost = $15000 Price = $0.05 Variable cost = $ 0.01

Q: The marginal cost function of a company is given by MC = 5 + x, and the cost of %3D producing 2…

A: Marginal cost function; MC= 5+x Cost of producing 2 unit = 712 OMR Cost function of the company:-…

Q: Consider the accompanying breakeven graph for an investment, and answer the following questions.(a)…

A: Break-even point: The breakeven point is the degree of creation at which the expenses of creation…

Q: Which of the following statements is true? Costs are always explicit, never implicit. Costs are…

A: Cost is the expenditure incurred by the firm on purchase of factors of production for the production…

Q: Isabel runs her​ family's small pineapple processing​ plant, which takes fresh pineapples and cuts…

A: Calculation of total cost of pineapple production per year Calculation of total cost and marginal…

Q: A company has a fixed cost of $30000 and a production cost of $6 for each disposable camera it…

A: Fixed cost = $30000   Production cost or variable cost = $6 per unit camera. Price of camera p=…

Q: You own a farm that requires spending of $93,318 to generate $275,393 per year. You discover that…

A: Given; Revenue generated= $275,393 Amount spend on farm= $93,318 It is discovered that the farm is…

Q: Which of the following statements is (are) correct? (x) Ann decides to open her own business…

A: Explicit costs are the expenditures incurred by an individual or a business out of its own pockets.…

Q: For the following cost function TC = a + bQ – cQ2 + dQ3, determine the equations for TFC, TVC, AFC,…

A: Given: TC = a + bQ – cQ2 + dQ3

Q: The small family company that you manage has invested $35,000 in developing a new product, but the…

A: When individuals or firms makes economic decision, they generally make cost-benefit analysis to know…

Q: The Yorkshire Cricket Company makes cricket bats out of lumber supplied to it by Acme Sporting…

A: It is the ability of a business or company to earn maximum profit with low cost which is considered…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: Answer to the question is as follows: