Question

29 If esplicit costs equal $40,000, implici costs equal 595,000, and accounting profit equals $23,000, i follows that total revenue equals and economic profit equals_ A. $75,000, $17,000 В S63100,-$72,00 C $68,000, 525,000 D. $22,000, $68,000 E. There is not enough information given to answer this question S0 When price $15, quantity demanded 200. When price $14, quantity demanded2 firm lowered pnce from $15 to $141t discovered that demand is and total revenue . elastic, increased elastic, decreased inelastic, increased inclastic; decreased None of the above A. B. с. D. E. 31. Price falls from $3 to $2, and the quantity demanded rises from 360 units to 400 units. What is the price elasticity of demand between these two prices? A. 260 B. 10.51 C 0.68 D. 0.26 E. 204 32 In the two-good model of consumption with goods X and Y, an increase in the price of good X causes a decrease in the demand for good X because of A. the substitution effect B. the income effect C. cross price effect D. Both A and B work together E. none of the above 10 12 13 13 MP Exhibit Two 33. Refer to Exhibit Two. The marginal product of the third lumberjack (cell C) is A. 4 B. 2 C.1 D. 12 E. None of the above 34 Refer to Exhibit Two. Which of the following statements is true? A. Diminishing returns does not exist because marginal product is positive throughout. B. Diminishing returns exists throughout all levels of output. C. Diminishing returns sets in with the 5 lumberjack because MP is zero. D. Diminishing returns sets in with the 3d lumberjack. E None of the above.

Answer 1

Ans:

29) Option B

$63,000; -$72,000

Explanation

Accounting profit = Revenue - Explicit cost

Revenue = Accounting profit + Explicit cost

               = $23,000 + $40,000

               = $63,000

Economic profit = Revenue - Explicit cost - Implicit cost

                          = $63,000 - $40,000 - $95,000

                          = -$72,000