ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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What are examples of fixed and variable costs in a fast food restaurant?
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- Until recently, Mark worked as a financial advisor, earning $65,000 annually. Then he inherited a piece of commercial real estate that had been renting for $14,000 annually. Mark decided to leave his job and operate a sea food restaurant in the space he inherited. At the end of the first year, his books showed total revenues of $300,000, and paid a total cost of $200,000 for food, utilities, cooks, and other supplies: Show all your work including formulas learned to support your answer for each of the following: A) Calculate his explicit costs: B) Calculate his implicit costs. C) Calculate his accounting profits. D) Calculate his economic profits.arrow_forwardTotal revenue, total cost, and profit. Oscar runs a lemonade stand. He sells each cup of lemonade for $2.50. The variable cost per cup, including lemons, sugar, and cups, is 50.75. Additionally, Oscar has fixed costs of $20 for his stand and equipment. In a day, Oscar sells 50 cups of lemonade. Calculate Oscar's total revenue, total cost, and profit for the day. Provide your rationaarrow_forwardFind the value of total revenue if output is 60 units and average revenue is $10arrow_forward
- How do you calculate a firm's total cost and total revenue?arrow_forwardHand written solutions are strictly prohibitedarrow_forwardWhat is the profit maximizing level of output and how much daily profit will the producer below earn if the price of pizza is $0.50 per slice? See the attachment for graph.arrow_forward
- Price ($) 1000 500 300 0 300 500 Supply Demand What is the total cost of producing 300 iPads? 1000 Quantityarrow_forwardPeople usually interchange "brand" and "product" in their daily conversation. As a marketing professional, discuss the difference between a brand and a product. Use appropriate examples from both service and non-service sector.arrow_forwardin your own personal life, what are some fixed and variable costs you have?arrow_forward
- What is the goal of the Multitasking machine?arrow_forwardThe difference between economic profit and accounting profit is? Average cost Direct costs Economic costs Variable costs Marginal costsarrow_forward-Briefly discuss average costs, including how they are calculated, how they are typically appear on a graph, and what they relate to profitability. -Briefly explain what is meant by the term "fixed costs" and provide three examples of same. What determines a firm's level of fixed costs? -Briefly explain what is meant by the term "variable costs" and provide three examples of same. -Briefly explain how the total revenue for a profit-seeking firm is determined.arrow_forward
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