EBK MICROECONOMICS: PRIVATE AND PUBLIC
16th Edition
ISBN: 8220103612142
Author: Gwartney
Publisher: Cengage Learning US
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Chapter 12, Problem 3CQ
(a):
To determine
Quantity of operators hired at a weekly wage of $250.
(b):
To determine
Maximum profit of the firm when the fixed cost is $1,500 per week.
(c):
To determine
Condition of the firm when the market price for each statement falls to $150.
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Students have asked these similar questions
Suppose a firm has the following expenditures per day: $250 for wages and salaries, $50 for materials, $60 for equipment, and $40 for rent. The market wage for the manager is $120 per day but the owner-manager does not draw a salary. Assume the daily revenue is $420.
What is the accounting profit for the firm described above? Just give equation formula.
Suppose a firm has the following expenditures per day: $250 for wages and salaries, $50 for materials, $60 for equipment, and $40 for rent. The market wage for the manager is $120 per day but the owner-manager does not draw a salary. Assume the daily revenue is $420.
What are the daily economic costs for the firm described above? Just give equation formula.
Yuri has been offered a job with a weekly wage of $800. Yuri declines the offer and starts a tutoring business of his own. He rents a classroom for $200/week. Additional material costs are $5 per student per one-hour tutorial. Tultion is $30 per student per tutorial (regardless of the size of the tutorial class).
a) What is the weekly accounting profit function for Yuri’s business?
b) What is the weekly economic profit function for his business?
c) What is the economic breakeven number of tutorial hours per week?
d) Does Yuri’s business exhibit economies of scale? Explain.
Only d is needed can u solve only d
Chapter 12 Solutions
EBK MICROECONOMICS: PRIVATE AND PUBLIC
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