Farmer McDonald gives banjo lessons for $20 an hour. One day, he spends 10 hours planting $100 worth of seeds on his farm. What opportunity cost has he incurred? What cost would his accountant measure? If these seeds yield $200 worth of crops, does McDonald earn an accounting profit? Does he earn an economic profit?

how does "Economic Profit" differs from the measurement of profit in other fields such as Accounting. How are costs measured in Economics?

Draw the cost-volume-profit diagram?

Tony is a wheat farmer, but he spends part of his day teaching guitar lessons. He has more students requesting lessons than he has time to teach and still maintain his farm. Tony charges $25/hr for guitar lessons. One spring day he spends 10 hours in his field planting $130 worth of seeds, which he expects will produce $300 worth of wheat. What will Tony’s economic profit equal?

The difference between economic profit and accounting profit is?   Average cost Direct costs Economic costs Variable costs Marginal costs

Caroline opens a lemonade stand for two hours.   She spends $15 for ingredients and sells $50 worth of lemonade.  In the same two hours, she could have mowed the neighbor's yard and earned $10. a. What are Caroline’s explicit and implicit costs?  b. What is Caroline’s accounting profit?  What is her economic profit?  Show how you calculated each profit.   The government imposes a $1,000 one-time license fee on all pizza restaurants.  As a result, which of the following cost curves shift, and why or why not?a. Average total cost.b. Marginal Cost.c. Average Variable Cost.

Which of the following profits represent economic profit? Choose all that apply.    a.  Your company sells 1,000 cars per month. Each car costs $20,000. Your cost for parts is $4 million. Your labor costs are $3 million. Your total profit is $13 million. b.  During the summer, you make ten go-karts and sell each one for $100. It costs you $200 in supplies. You could have made $500 during the summer if you had chosen to deliver phone books. Your total profit is $300.  c.  A restaurant makes $10,000 per month in total revenue. Supplies cost $2,000 per month, and labor costs are $3,000 per month. The restaurant's profit is $5,000. d.  A high-end airplane company sells five private jets per year. Each jet is sold for $10 million. The profit margin is 12 percent. If you were to change course and make yachts with the same available resources, you would make no additional profit.

Which of the following profits represent economic profit? Choose all that apply. a. A restaurant makes $10,000 per month in total revenue. Supplies cost $2,000 per month, and labor costs are $3,000 per month. The restaurant's profit is $5,000. b. During the summer, you make ten go-karts and sell each one for $100. It costs you $200 in supplies You could have made $500 during the summer if you had chosen to deliver phone books. Your total profit is $300. c. A high-end airplane company sells five private jets per year. Each jet is sold for $10 million. The profit margin is 12 percent . If you were to change course and make yachts with the same available resources , you would make no additional profit. d. Your company sells 1, 000 cars per month . Each car costs $20,000 . Your cost for parts is $4 million . Your labor costs are $3 million . Your total profit is $13 million .

Question 2 Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $700. In addition, it took her 20 hours to make the ketchup and to do so she took time off from a job that paid her $20 per hour. Instructions: Enter your answers as whole numbers. Linda's accounting profit is: Linda's econmica profit is:

Walt's Turkey Farm produced 400 turkeys last week. The marginal cost was $15 a turkey, average variable cost was $29 a turkey, and the market price was $33 a turkey. Did Walt maximize profit? If Walt did not maximize profit and if nothing has changed, will he increase or decrease the number of turkeys he produces to maximize his profit this week? profit, so if nothing changes he will Walt is the number of turkeys he produces to maximize his profit this week. O A. maximizing; decrease O B. maximizing; increase OC. maximizing; not change O D. not maximizing; increase O E. not maximizing; decrease