1.During a year of operation, a firm collects $5,000,000 (TR) in revenue and spends $3,500,000 (EXPLICIT) on labor expense, raw materials, rent, and utilities. The firm’s owner has provided $1,000,000 of her own money instead of investing the money and earning a 12 percent annual rate of return. Show your work. a. The explicit costs of the firm are $_________. The implicit costs are $_________. Total economic cost is $__________. b. The firm earns accounting profit of $________.  The firm’s economic profit is $_________.

Q: 1. Explicit and Implicit Costs Juan and Julia contributed $50,000 of their own money to the company…

A: Explicit costs are normal business expenses that appear in the general ledger and have a direct…

Q: Classify each of the following cost items as mostly fixed or variable 1. Raw materials 2. Direct…

A: Note:- Since you have put a multi-part question, we are providing you with the solutions to the…

Q: 1. Definition of economic costs Larry lives in New York City and runs a business that sells boats.…

A: Economic cost is the sum of all losses of any goods with a monetary value attached to them by any…

Q: What is the amount of Direct Materials used in production?

A:

Q: 1. Definition of economic costs Lorenzo lives in Denver and runs a business that sells guitars. In…

A: Explicit cost is a cost that is actually incurred and paid in cash. Implicit cost is the benefit…

Q: Economics 1. you are making $50,000 at a new job. the 401k match is 100% up to 5% and you vest 20%…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor…

A: It is given that,Firms’ Revenue = $450, 000Firms’ Explicit Cost (Expense on labor, raw material,…

Q: 2. Definition of economic costs Lorenzo lives in Detroit and runs a business that sells guitars. In…

A: Implicit cost refers to foregone income that could have been earned if resources were invested…

Q: 2. A man is considering investing P500, 000 to open a semi-automatic auto-washing business in a city…

A: Since the question you have posted consists of multiple parts, we will answer the first  question…

Q: 2. The internal rate of return on an investment refers to the interest rate earned on the: a.…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Problem 2: Investment 1. You have the following information about a firm: DY=AK®$ L°s, 2) A=2,…

A: (i) Y = AK0.5L0.5 Differentiate Y w.r.t K to get MPK => MPK = dY / dK => MPK = 0.5A K0.5 -1…

Q: During a year of operation, a firm collects $50,000 in sales revenue and spends $10,000 on salaries…

A: In a year a firm collects $50,000 in sales revenue and spends $10,000 on salaries of workers, $1,520…

Q: What are the difference between Direct Method Cash flow with that of indirect method cash flow,…

A: Cash flow refers to the inflow and outflow of an amount of money or its equivalent in the business.…

Q: 1. Definition of economic costs Eric lives in San Francisco and runs a business that sells pianos.…

A: Definition of explicit cost : The costs which are directly incurred on the factors of production or…

Q: |- You have the opportunity to invest in one of two companies. Company X has fixed cost of $10 000…

A: Company x fixed cost = 10,000,000 variable cost = 5/unit Company y fixed cost = 6,000,000 variable…

Q: 9. The present value of a future cost is: a. greater if interest rates are higher.b. greater if…

A: The present value is the current value of a future sum of money. It is calculated through the method…

Q: Assume you are managing a one-year project and have listed the project earned management value as…

A: Cost variance = Earned value - Actual value = $22,000- $$27,000 = -$5000 As cost variance is…

Q: Given that P(x) = 11.5x - 0.1x2 - 150 and that production is restricted to fewer than 75 units, find…

A: Break even point refer to a condition where there is no profit and no loss which means where total…

Q: Which of these managers have the sole responsibility of managing the whole company? a. Top b. Middle…

A: Levels of management: It is the line of division existing between various managerial positions in…

Q: What would you do if you were in Sheli's position?

A: Sheli should not change her stand and should recommend that SunFlower Manufacturing be granted a…

Q: Astume thit a company consisting of four divisions is considening three investment projects, A, 8…

A: In economics, it is said that when an individual enters the market, he will try to make rational…

Q: The notion of compound interest means that a) any amount you borrow will accumulate more and more…

A: Interest refers to the cost on the borrowed money or it can also be understood as a reward on…

Q: 3:55 QCCFIIMicCh7.docx QCCFIIMicCh7.docx 5. Suppose that a business incurred implicit costs of…

A: Hi! Thank you for the question but as per the guidelines, we only answer one question at a time.…

Q: 2. A man is considering investing P500, 000 to open a semi-automatic auto-washing business in a…

A: Option A is correct.

Q: The value of an innovation to a firm is best thought of as. O The present value of the flows of…

A:

Q: 34. Mr. G had been working for a paper company as the Assistant Operation Officer headquartered in…

A: Culture is the set of social norms, customs, believes, and behavior available in human society.

Q: If the firm increases the volume of used resources by 30%, and the volume of production thus…

A: Production refers to the activity of making and refining a raw material so that it can provide…

Q: True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be…

A: (Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: Question 1 Suppose that the equation for the marginal productivity of capital is given by: MPK=…

A: Question 1: (Since the question has multiple subparts the first three (a-c) have been solved. Please…

Q: 1. Define each of the following terms: a. economies of scope experience good internal rate of return…

A: a. Economies of scope - Economies of scope states that when the production of one good reduces the…

Q: We also read that " The number of local firms listed as important suppliers to Samsung has increased…

A: Any company would outsource for the only reason that they are available at a cheaper price, that too…

Q: Q9. The profit levels of a company for varying levels of sales is shown in the table below: (All…

A: So we have to calculate the profit rate for each sales given and compare the given table which one…

Q: U.S. utility-scale electricity generation by source, amount, and share of total in 20211 Preliminary…

A: UTILITY-SCALE  Utility-Scale refers to the generation of electricity through the use of power…

Q: 2. Suppose that you are the manager of a studlo cafe, and you are planning to invest on a new camera…

A: Incremental cost refers to the additional cost incurred on the production of the one extra unit of…

Q: Part I and Part II are independent. Please answer both parts. Part I: During a year of operation, a…

A: Accounting cost: The accounting cost is the total explicit cost of the firm. Explicit cost mean, the…

Q: When a firm buys a new computer increases, and when the firm gets rid of old computers d O…

A: Computers are bought by the firm so they are not directly used by the end consumer but they are used…

Q: 1. Definition of economic costs Bob lives in Miami and runs a business that sells guitars. In an…

A: Explicit Costs refers to the actual monetary payments made while conducting business operations.…

Q: For independent projects identified as A, B, C, D, E, F, and G, how many mutually exclusive bundles…

A:

Q: Match the terms in the first column with the appropriate definition in the second column.

A: Part (a) First cost : The total initial investment required to get an asset ready for service.

Q: 00-There are multiple stages in a business life cycle. Sometimes they generate higher return while…

A: Business: A business is characterized as an association or venturesome element occupied with…

Q: Requirements 1. Describe the production costs in the equation formY = f+ xX. 2. Assume Alta intends…

A: Given information Cost function Y=f+Vx Given data analyze cost for 350 units.

Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?