Q9. A firm sold 20,000 SD cards at $50 each in the previous year. The firm also spent $600,000 on hiring labour, $50,000 on capital equipment and $200,000 on raw materials. If the factory is on a land that could have been rented out for $30,000 per year if it wasn't being used- State the formulae and calculate accounting profit and economic profit.

Q9. A firm sold 20,000 SD cards at $50 each in the previous year. The firm also spent $600,000 on hiring labour, $50,000 on capital equipment and $200,000 on raw materials. If the factory is on a land that could have been rented out for $30,000 per year if it wasn't being used- State the formulae and calculate accounting profit and economic profit.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.1: What Are Costs?

Problem 1QQ

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