Suppose you own a small business. Last month, your total revenue was $7,500. In addition, you paid $2,500 in monthly rent for office space, $300 in monthly rent for equipment, $1,750 to your workers in wages for the month, and $1,800 for the supplies you used that month. f you correctly determine that your economic profit last month was -$200, then it must be true that

Suppose you own a small business. Last month, your total revenue was $7,500. In addition, you paid $2,500 in monthly rent for office space, $300 in monthly rent for equipment, $1,750 to your workers in wages for the month, and $1,800 for the supplies you used that month. f you correctly determine that your economic profit last month was -$200, then it must be true that

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a feed mill is looking at their total revenue. If they receive $36 per sack of horse feed and $14 per sack of cattle feed, how much will their total revenue change if the mill increased the sacking of horse feed from 10,000 sacks to 20.000 sacks and decreased the sacking of cattle feed from 128,000 sacks to 119,000 sacks O Revenue will increase by $234,000 Revenue will decrease by $400.000 O Revenue will decrease by $184.000 O Revenue will increase by $250.000
Consider total cost and total revenue, given in the following table: In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.) Marginal Cost (Dollars) Total Cost Total Revenue Marginal Revenue (Dollars) Profit Quantity (Dollars) (Dollars) (Dollars) 10 14 13 21 4 17 28 24 35 32 42 42 49 In order to maximize profit, how many units should the firm produce? Check all that apply. 6. In the previous table, enter marginal revenue and marginal cost for each quantity. On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 unit to 2 units is $5, then you would plot a point at (1.5, 5).) 10 Marginal Revenue 00
Imagine that you own your own business, or you are the manager of a company. Please provide concrete examples of the fixed costs and variable costs that are specific to YOUR firm.
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In what way does an economist's measurement of profit differ from an accountant's? Accountants calculate total revenue differently. Accountants do NOT always include all of the opportunity costs when calculating total production costs. Economists calculate higher profits for firms as economic profit generally exceeds accounting profit. Economists do NOT always include all of the opportunity costs when calculating total production costs.
You are a newspaper publisher. You are in the middle of a one-year factory rental contract that requires you to pay $500,000 per month, and you have contractual salary obligations of $1,250,000 per month that you can't get out of. You also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.10 per paper. Instructions: Enter your answers rounded to two decimal places. a. If sales fall by 20 percent from 1,000,000 newspapers per month to 800,000 newspapers per month, what happens to the AFC per newspaper? AFC per newspaper (Click to select) v from $ to $ b. What happens to the MC per newspaper? MC per newspaper (Click to select) v c. What happens to the minimum amount that you must charge to break even? It (Click to select) v from $ to $
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Suppose that a small hair styling salon had revenues of $200,000 in a given year. The owner spent $15,000 on utilities, $72,000 on supplies (shampoo, conditioner, hair coloring and other chemicals, etc.), and $60,000 on equipment (mirrors, chairs, scissors, curling irons, etc.), including maintenance. The owner could have earned $70,000 working at another salon. A) What is the accounting profit for the hair styling salon? B) What is the economic profit for the hair styling salon? C) What would revenue have to be for the owner of the hair styling salon have to be for him to earn an economic profit of $10,000.
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.
If a Prof leaves their $100,000 per year job to start a business that earns annual revenue $400,000, and has annual labour and rental costs of $200,000, the economic profit of the business is $200,000. True or false and explain why. Use graphs if needed.
Amy wants to open a coffee shop and has already rented a coffee retail space on Bloor Street, signing a lease for three months, which includes her expresso-making equipment. The rent is $900 per week and the wage for barristas is $16 per hour. Amy can legally keep her shop open up to 100 hours a week. The number of expresso drinks q Amy’s barristas can make in an hour given the capital on hand, and assuming she doesn’t run out of beans or cups, is given by q = 15L.5 where L is the number of barristas currently working. Amy can provide 50 hours of barrista labor herself instead of hiring a worker if she wants to reduce labor costs, and she could also work 50 hours a week running the coffee shop across the street for $25 an hour. The typical price of an expresso drink is $7, which Amy takes as given since there are many other coffee shops in the neighborhood. The cost of the materials M (cups, beans, and milk) that go into each drink sold is $2.50, and Amy’s coffee bean and cups…