Your uncle is thinking about to open a fish & chips restaurant. He estimated that it would cost $300,000 per year to rent the location, $45,000 to buy the stock and $60,000 to purchase equipment. In addition, he would have to quit his $85,000 per year job as an accountant. How much is his explicit cost, implicit cost, and briefly explain the difference between Accounting profit and Economic profit with examples?

Q: How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller…

A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…

Q: During the recent auto sales slump, GM, Ford, and Chrysler decided it was cheaper to sell cars to…

A: The article mentions anout selling cars at a loss. It is referring to economic cost.

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

A: opportunity cost is what is sacrificed when a person select one option over another one. it is a…

Q: Jane is reviewing the accounting book of a firm. One page of it is damaged and Jane cannot see the…

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

Q: The CEO of a major automobile manufacturer overheard one of its division managers make the following…

A: Answer: Answer: The CEO would chastise the manager. Explanation: To maximize the profit, the…

Q: Complete the following table of various types of cost for a firm in the short run. Assume that Total…

A: The expenses that are incurred for carrying out day-to-day transactions are known as costs. There…

Q: What is the difference between Economic Profit and Accounting profit?

A: Explicit Cost is the cost paid to factors of production that are hired from outsiders. Implicit Cost…

Q: Jill Johnson says the following: "I am currently producing 10,000 pizzas per month at a total cost…

A: Output1=Y1=10,000 pizzas Total Cost1=TC1=$70,000 Output2=Y2=10,001 pizzas Total Cost2=TC2=$70,040…

Q: 2.9 [Related to the Apply the Concept: “Fixed Costs in the Publishing Industry" D] A Federal Reserve…

A: Meaning of Cost: The term "cost" describes the circumstances in which a business incurs different…

Q: Use your own example to clearly differentiate between an "accounting profit" and an "economic…

A: When talking about the difference between economic and accounting profit, it can be said that…

Q: Consider the concepts of accounting profit and economic profit.  Suppose you are a consultant and…

A: Profit is the surplus value that is generated in a process of production, which usually accrues to…

Q: What are some of the implicit cost incurred by an entrepreneur in running a firm? How are these…

A: The opportunity cost refers to the value of the next best alternative sacrificed when an individual…

Q: Each graph below illustrates three short run cost curves for firms, where ATC is Average Total Cost…

A: Marginal Cost is the additional cost received by selling one more unit of output. MC is the…

Q: Briefly explain the short run fixed costs and the variable cost in modern economics?

A: Short-run is the time period that is less than or equal to a year. The costs can be divided into two…

Q: Suppose a firm producing table lamps has the following​ costs: Quantity Average Total Cost ​1,000…

A: The evaluation of the discussion between Ben & Jerry can be done as understanding the fact that…

Q: Graph the average variable cost, average total cost and marginal cost curves.…

A: Here in the question, we have the quantity production(in thousands) and the cost schedule for a firm…

Q: Quantity Total Fixed Costs Total Variable Costs (Dollars) (Dollars) 0 180 0 1 180 80 2 180 140 3 180…

A: 1) Variable Cost is the cost when nothing is produced therefore when output is zero variable cost is…

Q: The firm with total revenues of a 100 million explicit cost of 90 million and implicit cost of 20…

A: Accounting Profit is the difference between total revenue earned by firm and the explicit costs.…

Q: table below shows the cost of production for Coca-cola 200 ml. please answer the table and explain…

A: TC = FC + VC MC = change in TC ATC = TC / output AVC = VC / output

Q: 2. (Module 55) Use the information in the table below to answer the following questions. Average…

A: a) Total fixed cost = Average fixed cost / output.

Q: Can a firm earn an economic loss and an accounting profit at the same time?

A: The measure that depicts distribution of income to owner in a profitable process of production in…

Q: Briefly write the behaviour of Average fixed cost when output increase

A: # By the name itself we can see that average fixed cost is on an average value of fixed cost…

Q: The following incomplete table describes the costs faced by a firm as it produces an increasing…

A: Marginal cost is the cost incurred in making or procuring an additional unit of output.  For…

Q: What is the difference between economic profit and accounting profit?

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

Q: Ball Bearings, Inc., faces costs of production as follows:a. Calculate the company’s average fixed…

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

Q: Briefly explain what is meant by the term "fixed costs" and provide three examples of same.  What…

A: A) The term fixed expense alludes to an expense that doesn't change with an increment or decline in…

Q: 4. Complete the short run cost table below for the Wanda Widget Company, where Q is the number of…

A: The firms, businesses, and producers are considered to be some of the most important entities in the…

Q: Define and explain the differences between accounting profit and economic profit

A: Firms earn revenue with the help of the sale of the products that it produces. On the other hand, it…

Q: The following table shows the end of the year account entries of a small company Item Amount ($)…

A: Implicit costs are those costs which does not include any payment of money and includes the cost of…

Q: please pick an example of three types of costs that a business can incur and briefly explain whether…

A: Fixed Costs are those costs that remain constant at all levels of output.  Variable Costs are those…

Q: Quantity Total Fixed Costs Total Variable Costs (Dollars) (Dollars) 0 180 0 1 180 80 2 180 140 3 180…

A: Solution: (a)Formula used (i) Total cost (TC) = Total fixed cost (TFC)+ Total variable cost (TVC)…

Q: Why is the Average Variable cost U-shaped

A: Costs are the expenses that firms incur in the production of goods and services. A firm typically…

Q: The blue line on the following graph shows a firm's daily costs for the first 90 days of the fiscal…

A: The area of shaded region will be equal to area of triangle OAB minus area of triangle OCD

Q: You are working for a company that does helicopter tours of the Grand Canyon. So far, you have…

A: (a) Initial total cost (TC1) = 500 By organising an additional tour, new average cost = 55 Hence,…

Q: Briefly explain what is meant by the term "variable costs" and provide three examples of same.

A: Total cost of production has two parts- fixed cost, which remains fixed along the production and…

Q: How is it possible to have positive accounting profit and negative economic profit concurrently?

A: Answer: Let us first understand the difference between accounting profit and economic profit.…

Q: Briefly explain the difference between economies of scale, economies of scope and returns to scale.

A: Answer to the question is as follows :

Q: Illustrate and briefly explain the relationship  between Marginal cost and average cost curves

A: The markets are the place where the buyers and the sellers of goods and services tend to interact…

Q: The CEO of a major automaker overheard one of its division managers make the following statement…

A: The revenue of a firm or business must exceed their cost so that it could remain profitable and do…

Q: The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable…

A: Average fixed cost (AFC)=Total fixed costQ AFC=10000010000=10