Calculate the accounting profit.

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Answer 1

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Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

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Joe quits his computer programming job, where he was earning a salary of $70,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $20,000 per year. In his first year of business he has the following expenses: salary paid to himself, $45,000; rent, $0; and other expenses, $40,000. Find the accounting cost and the economic cost associated with Joe's computer software business. (Enter numeric responses using an integer.) The accounting cost of Joe's business is $ (Enter your response as an integer.) es Get more help Clear all Check answer

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Answer 2

Question

100%

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

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Answer 3

Question

100%

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

100%

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

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Answer 6

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Answer 7

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

Answer 8

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

Answer 9

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Answer 10

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Answer 11

Expert Solution & Answer

Answer 12

Expert Solution & Answer

Answer 13

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

Answer 14

Ch. 3 - Prob. 1MC Ch. 3 - Prob. 2MC Ch. 3 - Prob. 3MC Ch. 3 - Prob. 4MC Ch. 3 - Prob. 5MC Ch. 3 - Prob. 6MC Ch. 3 - Prob. 7MC Ch. 3 - Prob. 8MC Ch. 3 - Prob. 9MC Ch. 3 - Prob. 10MC

Calculate the accounting profit.

Calculate the accounting profit.

Explanation of Solution

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Chapter 3 Solutions