ECONOMICS W/CONNECTPLUS PKG>IC<
20th Edition
ISBN: 9781259685897
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 9, Problem 1RQ
To determine
Accounting and economic profit.
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Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $700. In addition, it took her 20 hours to make the ketchup and to do so she took time off from a job that paid her $20 per hour. Linda’s accounting profit is while her economic profit is. LO9.1 a. $700; $400 b. $300; $100 c. $300; negative $100 d. $1,000; negative $1,100
Bessie wants to calculate the accounting and economic profits on her cattle farm in
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Chapter 9 Solutions
ECONOMICS W/CONNECTPLUS PKG>IC<
Ch. 9.2 - Prob. 1QQCh. 9.2 - Prob. 2QQCh. 9.2 - Prob. 3QQCh. 9.2 - Prob. 4QQCh. 9.5 - Prob. 1QQCh. 9.5 - Prob. 2QQCh. 9.5 - Prob. 3QQCh. 9.5 - Prob. 4QQCh. 9.8 - Prob. 1QQCh. 9.8 - Prob. 2QQ
Ch. 9.8 - Prob. 3QQCh. 9.8 - Prob. 4QQCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
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- If You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year. then your economic profit is Select one: a. 10,000 O b.-10,000 O c. -40,000 O d. 20,000 O e. 40,000arrow_forwardLO 11.2: I can calculate marginal cost, revenue, and profit and distinguish between marginal cost and average cost. Suppose that Patrick's Handmade Puppets has a production cost that is given by C(x) = 2,000 + 130x – 0.6x2 + 0.002x3 dollars (0arrow_forwardThe following figure shows the revenue and cost curves for a firm X. RM 10 a. b. C. 7 6 LO 5 4 3.5 0 20 25 30 MC 40 AVC AC AR=MR Units If a firm X achieves productivity efficiency, what will be the total revenuel generated At what price will a firm stop operating? Please explain. If the market price is RM4.00, what is the total profit or total loss.arrow_forwardAndrea starts her own business, which earns $75,000 in accounting profit in the first year. When deciding to open the business, Andrea withdrew $10,000 from savings, which earned 5 percent interest. Andrea also turned down three separate job offers with annual salaries of $45,000, $55,000, and $65,000. What is Andrea's economic profit from this business? O a. $0 O b. $-500 O c. $9,500 O d. $65,000 O e. none of the abovearrow_forwardSuppose a feed mill is looking at their total revenue. If they receive $36 per sack of horse feed and $14 per sack of cattle feed, how much will their total revenue change if the mill increased the sacking of horse feed from 10,000 sacks to 20.000 sacks and decreased the sacking of cattle feed from 128,000 sacks to 119,000 sacks O Revenue will increase by $234,000 Revenue will decrease by $400.000 O Revenue will decrease by $184.000 O Revenue will increase by $250.000arrow_forwardStuff, Incorporated is a firm with a total revenue of $1,000, marginal cost of $5, and average variable cost of $4. Both the output and input markets are perfectly competitive and Stuff, Inc. is in long run equilibrium. Stuff, Inc.'s output and total fixed costs must be equal to which of the following? O Output 200; Fixed Cost $200 O Output 200; Fixed Cost $400 O Output 200; Fixed Cost $800 O Output 250; Fixed Cost $800 O Output 250; Fixed Cost $400arrow_forwardTable: Total Cost and Output Table: Total Cost and Output Output Total Cost 0 1 2 3 4 $ 10 60 80 110 170 245 Use Table: Total Cost and Output, which describes Sergei's total costs for his perfectly competitive all-natural ice cream firm. If the market price of a tub of ice cream is $67.50, how much is Sergei's total revenue at the profit-maximizing output? O $270.00 O $170.00 $100.00 $67.50arrow_forward8. Suppose that Joe is the owner-operator of Joe's Haircuts. Last year he earned $100,000 in total revenue and paid $65,000 to his employees and suppliers. During this last year Joe received three job offers to work for other businesses, with the highest being $40,000 per year. What was Joe's accounting profit for the last year? What was Joe's economic profit for the last year?arrow_forwardConsider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $50,000 to $62,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $68,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? The marginal revenue product of capital? b. What is the ratio of the marginal revenue product of labor to the price of labor (MRP ✓ ÷ PL)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP C÷ PC)? c. Is the firm using the least-costly combination of inputs? (Click to select) = d. Does adding an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent? (Click to select)arrow_forwardConsider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $62,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $58,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? $ The marginal revenue product of capital? $ b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? : What is the ratio of the marginal revenue product of capital to the price of capital (MRPC/PC)? :arrow_forwardConsider table 3.1. What is the dollar amount of average variable cost per unit at the production level of 600 units? TC=3205 Production (units) 0 100 Select one: O a. 4.04 O b. 4.34 Oc 4.74 O d. 5.04 200 300 400 500 600 700 Rent $300 $300 $300 $300 Wages $200 $410 $650 $900 $1,200 $300 $300 $1,520 $300 $1,905 $300 $2,300 Supplies Tools $0 $100 50 $100 $150 $200 $250 $300 $350 $200 $300 $400 $500 $600 $700 $800 Total Cost $600 $960 $1,350 $1,750 $2,200 $2,670 $3,205 $3,750 3205 700 300 2,205 TVC 1 - 2205/600= 3.675 Aarrow_forwardhapter 7 - Production, Cost and X ts/633514e77ebfcb001ff309cb Chapter 7 - Production, Cost and Industry Structure $ A The table below shows cost data for producing different amounts of chairs. Use the given information to find the Variable Cost for each quantity. 4 R F V O f5 + % 5 T G B f6 Y H Quantity Total Cost & 7 N 1 2 3 4 LO 5 a hp U fa * J 52.00 234.00 384.00 502.00 592.00 614.00 8 3 f9 | K Variable Cost f10 O L f11 P f12 82°F @ + [ = insert ] ☆ I am finished prt sc pause 6:14 PM 10/8/2022 backspace delete X hom enterarrow_forwardarrow_back_iosSEE MORE QUESTIONSarrow_forward_ios
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