19.
Economic profit = Accounting profit - implicit cost
Implicit cost = Accounting profit - Economic profit = 43002 - (-43002) = 43002 + 43002 = 86004
Option D is the correct answer
20.
Economic profit = Revenue - explicit cost - implicit cost = 20000 - 5000 - 60000 = -45000
Option D is the correct answer
Pls upload rest of the questions separately as HOMEWORKLIB Policy
in 19. Sarah's accountant tells her that she made an accounting profit of $43,002 running a...
CHAPTER 10 QUESTIONS Use the following diagram to answer the appropriate questions: Marginal Cost of Sweatshirts Quantity of shirts Total cost 21. (Table: Marginal Cost of Sweatshirts) Look at the table Marginal Cost of Sweatshirts. The marginal cost of the second sweatshirt is: A. $9. B. $20. C. $11. D. $29. 22. According to the marginal decision rule, if the marginal benefit is: A. more than marginal cost, an activity should be reduced. B. equal to marginal cost, an activity...
Rita quit her job as dentist where she earned $150,000/year and converted a house that she owns into a museum for her collection of clocks. Before doing this, Rita had been renting the house out for $20,000/year. Rita hired 2 employees for her museum at a total cost of $50,000/year, and had to pay $10,000/year for utilities. Her museum brought in revenues of $125,000 the first year. Someone even offered her $1,000,000 to purchase her entire collection of clocks. She...
Answer all the questions (2pts each question) 1. Lauren runs a chili restaurant in San Francisco. Her total revenue last year was $110,000. The rent on her restaurant was $48,000, her labor costs were $42,000, and her materials, food and other variable costs were $20,000. Lauren could have worked as a biologist and earned $50,000 per year. An economist calculates her implicit costs as A) $150,000. B) $63,000. C) $50,000. D) $110,000. 2. Which of the following is an example...
HANDOUT ABOUT PRODUCTION -CH Z Note: An explicit cost is a cost paid in money. An implicit cost is an opportunity cost incurred by a firm when it uses a factor of production for which it does not make a direct money payment Normal profit is the return to entrepreneurship. The normal profit is part of a firm's opportunity cost because it is the cost of persuading the entrepreneur of not running another business. Chapter 7 Handout. Question 2: In...
ANSWERS MUST BE CLEAR TO READ! THANKS! SHOW ALL YOUR CALCULATIONS FOR ACCOUNTING AND ECONOMIC PROFIT! Kenji lives in Houston and runs a business that sells pianos. In an average year, he receives $704,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totaling $286,00o. He owns his showroom; if he chooses to rent it out, he will receive $3,000 in rent per year. Assume...
Prof X is a university professor who is thinking about opening and running her own consulting firm. If she does so, she'll do it full-time, and resign from the university. She estimates the following figures for her consulting firm: annual revenues = $ 210,000; an assistant hired for $60,000 a year; office supplies & utilities at $8,000 a year; she'll have to take out a bank loan of $200,000 (@8% interest per year) for office office equipment & furniture; she'll...
Gita is an auto mechanic and runs a small repair shop. She hires one mechanic at $20,000 per year, pays a monthly rent of $5,000 towards the lease of the premises where her repair shop is located, and spends $20,000 per year on materials needed for repairing cars and trucks. She has invested $40,000 of her own savings in heavy equipment (air and strut compressors, brake lathes, heavy-duty lifts etc.) that could earn her $4,000 per year if invested elsewhere....
Karen, a programmer, eamed $40,000 in 2010, but in 2011, she opened a body board manufacturing business. After one year, she submited the data on the right to her accountant Karen's explicit costs areand implicit costs are O A $62,000, $65,700 O B. $63,700, $43,800 O c. $43,600. S63.700 O D. $43,600. 565,700 OE. 965,700, 562.000 Karen's economic profit is O A $20,000 O B. $176,400 Question Facts i She stopped renting out her cottage for $5,500 a year and...
4 questions MICROECONOMICS ECONOMIC VS. ACCOUNTING PROFITS - HOMEWORK BSE 2212 2) Chapter 9 #1. Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4,000 per year if has been offered $15,000 per year to work as a potter for...
Kate quit her job, where she earned $120,000 per year, to start her own financial consulting firm. She invested $80,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $80,000 for rent on the office building, $420,000 for wages and salaries of employees, and $11,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $60,000. During the year, the firm...