10. If a firm is choosing to operate that means they have a a. positive accounting profit b. Positive or 0 economic profit c. Positive total revenue d. None of the above
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10. If a firm is choosing to operate that means they have a a. positive accounting profit b. Positive or 0 economic profit c. Positive total revenue d. None of the above
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- A small coffee house has the following costs: building and pizza oven rentals 100,000 labor 120,000owners salary given up 85,000 value of entrepreneurial talent 30,000 raw material 100,000 Bank loan payment 15,000 interest given up by owner 5,000 revenue for the firm is expected to be 420,000 for the year. a. Calculate the firms accounting profit and its economic profits b. Should the firm continue business in the long term if revenue and costs continue at the same level? Why or why not?based on the information in the table what is marla's profit margin? marla's smoothie shop total revenue-$1,400total cost- $900average cost- $7fixed cost-$700quantity-200 A.$3.50 B.$2.50 C.$4.50 D.$5.00a. Calculate the missing total revenue and marginal revenue amounts Instructions: Enter your answers as whole numbers in the gray shaded cells. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Production and Costs Total Product 0 1 2 3 4 5 65 7 B 0 10 Average Fixed Cost $60.00 30:00 20.00 15.00 12.00 10.00 8.57 7,50 667 6.00 Average Variable Cost $45.00 42 50 40.00 37.50 37.00 37.50 38:57 40.63 43 33 46.50 Average Total Marginal Cost Cost $105.00 72.50 60.00 52.50 49 00 47.50 47 14 48.13 50.00 52.50 $45 40 30 35 40 65 75 Price 28253349RR $115 100 71 63 55 37 29 Quantity Demanded 0 1 2 3 4 5 6 7 8 9 10 Demand Total Revenue Marginal Revenue
- REVENUE OR COST (dollars per day) 700 600 500 400 300 250 200 100 0 T 1 50 90 question: 160 QUANTITY Total cost 220 Total Revenue Refer to the figure above. The profit maximizing output for this firm is: a. above 220 units b. 220 units c. 160 units d. 90 units e. none of the aboveQuestion 2 Any firm's equals ATC xq. total revenue total cost c) marginal cost marginal revenueIf a firm makes zero economic profit, then the firmA.has total revenues greater than its economic costs.B.must shut down.C.must have no fixed costs.D.has accounting profit equal to their implicit costs.
- Jaime owns and manages a café in Collegetown whose annual revenue is $5,000. Annual expenses are as follows: Labor Expense Food and drink Electricity Vehicle lease Rent Interest on loan for equipment Amount $2,000 500 100 150 500 1,000 a. Calculate Jaime's annual accounting profit. $ b. Suppose Jaime could earn $1,000 per year as a recycler of aluminum cans, but she prefers to run the café. In fact, she would be willing to pay up to $275 per year to run the café rather than to recycle. Is the café making an economic profit? , (Click to select) the café is making an economic (Click to select) of $ Should Jaime stay in the cafe business? (Click to select) per year. c. Suppose the café's revenues and expenses remain the same, but recyclers' earnings rise to $1,100 per year. Is the café making an economic profit? (Click to select) ✓ the café is making an economic (Click to select) of $ per year. Should Jaime stay in the café business? (Click to select) d. Suppose Jaime had not had gotten a…2. Do the following 4 businesses have a positive profit? Should they shut down or not? Circle the correct answer. a. TR = $300 TC= $600 TFC=$350 TVC= $250 %3D %D 0000 Positive Profit or Loss Shutdown or Keep Operating b. P=$4.50 ATC=$4.00 AVC=$3.50 %3D Positive Profit or Loss Shutdown or Keep Operating c. TR = $800 TC= $600 TFC= $200 TVC= $400 %3| %3D Positive Profit or Loss Shutdown or Keep Operating d. P $7.00 ATC= $9.00 AVC= $8.00 %| Positive Profit or Loss Shutdown or Keep OperatingCosts and Profit Maximization Under Competition End of Chapter Problem 21. Sandy owns a firm with annual revenues of $1,000,000. Wages, rent, and other costs are $900,000. a. Sandy's accounting profit is $ 100000 b. Suppose that instead of being an entrepreneur, Sandy could get a job with one of the following annual salaries (i) $50,000; (ii) $100,000; or (iii) $250,000. Assume that a job would be as satisfying to Sandy as being an entrepreneur. Sandy's economic profit under scenario (i) is $ Sandy's economic profit under scenario (ii) is $ Sandy's economic profit under scenario (iii) is $
- 22. Which one of these will continuously increase as more products are produced? a. None of the choices b. Variable cost c. Average fixed cost d. Fixed cost5. If a firm makes zero economic profit, then the firma) earns revenue that exceeds its economic costs.b) must shut down.c) can be earning positive accounting profit.d) has no fixed costs.How to Determine "Accounting Profit"