Consider the below graph. Suppose that the price per unit corresponding to the position of d 1 is at $4.50 per unit and that the quantity at point E 1 is exactly 7 units per hour. Calculate total revenues, total costs and economic profits at point E 1 and explain why it is called the short run breakeven point. Concept Introduction: Total revenue: Total revenue is the sum of all revenue resulting from the sales. The total revenue is calculated by multiplying price into quantity. Total cost: Total cost is the sum of all cost incurred during the production process. Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which is described as the opportunity cost of anything. Economic profit

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Answer 1

Question

Chapter 23, Problem 16P

To determine

Consider the below graph. Suppose that the price per unit corresponding to the position of d₁ is at $4.50 per unit and that the quantity at point E₁ is exactly 7 units per hour. Calculate total revenues, total costs and economic profits at point E₁ and explain why it is called the short run breakeven point.

Concept Introduction:

Total revenue: Total revenue is the sum of all revenue resulting from the sales. The total revenue is calculated by multiplying price into quantity.

Total cost: Total cost is the sum of all cost incurred during the production process.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which is described as the opportunity cost of anything.

Economic profit

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Answer 2

Question

Chapter 23, Problem 16P

To determine

Consider the below graph. Suppose that the price per unit corresponding to the position of d₁ is at $4.50 per unit and that the quantity at point E₁ is exactly 7 units per hour. Calculate total revenues, total costs and economic profits at point E₁ and explain why it is called the short run breakeven point.

Concept Introduction:

Total revenue: Total revenue is the sum of all revenue resulting from the sales. The total revenue is calculated by multiplying price into quantity.

Total cost: Total cost is the sum of all cost incurred during the production process.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which is described as the opportunity cost of anything.

Economic profit

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Answer 3

Question

Chapter 23, Problem 16P

To determine

Consider the below graph. Suppose that the price per unit corresponding to the position of d₁ is at $4.50 per unit and that the quantity at point E₁ is exactly 7 units per hour. Calculate total revenues, total costs and economic profits at point E₁ and explain why it is called the short run breakeven point.

Concept Introduction:

Total revenue: Total revenue is the sum of all revenue resulting from the sales. The total revenue is calculated by multiplying price into quantity.

Total cost: Total cost is the sum of all cost incurred during the production process.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which is described as the opportunity cost of anything.

Economic profit

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Answer 4

Question

Chapter 23, Problem 16P

To determine

Consider the below graph. Suppose that the price per unit corresponding to the position of d₁ is at $4.50 per unit and that the quantity at point E₁ is exactly 7 units per hour. Calculate total revenues, total costs and economic profits at point E₁ and explain why it is called the short run breakeven point.

Concept Introduction:

Total revenue: Total revenue is the sum of all revenue resulting from the sales. The total revenue is calculated by multiplying price into quantity.

Total cost: Total cost is the sum of all cost incurred during the production process.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which is described as the opportunity cost of anything.

Economic profit

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Answer 5

Chapter 23, Problem 16P

To determine

Consider the below graph. Suppose that the price per unit corresponding to the position of d₁ is at $4.50 per unit and that the quantity at point E₁ is exactly 7 units per hour. Calculate total revenues, total costs and economic profits at point E₁ and explain why it is called the short run breakeven point.

Concept Introduction:

Total revenue: Total revenue is the sum of all revenue resulting from the sales. The total revenue is calculated by multiplying price into quantity.

Total cost: Total cost is the sum of all cost incurred during the production process.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which is described as the opportunity cost of anything.

Economic profit

Answer 6

Chapter 23, Problem 16P

To determine

Consider the below graph. Suppose that the price per unit corresponding to the position of d₁ is at $4.50 per unit and that the quantity at point E₁ is exactly 7 units per hour. Calculate total revenues, total costs and economic profits at point E₁ and explain why it is called the short run breakeven point.

Concept Introduction:

Total revenue: Total revenue is the sum of all revenue resulting from the sales. The total revenue is calculated by multiplying price into quantity.

Total cost: Total cost is the sum of all cost incurred during the production process.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which is described as the opportunity cost of anything.

Economic profit

Answer 7

Chapter 23, Problem 16P

To determine

Consider the below graph. Suppose that the price per unit corresponding to the position of d₁ is at $4.50 per unit and that the quantity at point E₁ is exactly 7 units per hour. Calculate total revenues, total costs and economic profits at point E₁ and explain why it is called the short run breakeven point.

Concept Introduction:

Total revenue: Total revenue is the sum of all revenue resulting from the sales. The total revenue is calculated by multiplying price into quantity.

Total cost: Total cost is the sum of all cost incurred during the production process.

Economic profit: The economic profit of a firm is calculated by deducting total revenue from total cost. The total costs consists of both implicit and explicit costs. Explicit cost is the ordinary costs of the firm like rent, salaries to the employees etc. Implicit cost is also known as imputed cost which is described as the opportunity cost of anything.

Economic profit

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 23 - Prob. 23.1LO Ch. 23 - Prob. 23.2LO Ch. 23 - Prob. 23.3LO Ch. 23 - Prob. 23.4LO Ch. 23 - Prob. 23.5LO Ch. 23 - Prob. AFCT Ch. 23 - Prob. BFCT Ch. 23 - Prob. CFCT Ch. 23 - Prob. 1CTQ Ch. 23 - Prob. 2CTQ

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Chapter 23 Solutions