Which of the following statements is correct? OA Accounting profit is typically larger than economic profit. OB. Accounting profit equals the firm's revenues minus all of its costs, implicit and explict OC. Economic profit equals the firm's revenues minus its explicit costs OD. All of the above

Which of the following statements is correct? OA Accounting profit is typically larger than economic profit. OB. Accounting profit equals the firm's revenues minus all of its costs, implicit and explict OC. Economic profit equals the firm's revenues minus its explicit costs OD. All of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

Which of the following statements is correct?
OA. Accounting profit is typically larger than economic profit.
O B. Accounting profit equals the firm's revenues minus all of its costs, implicit and explicit
OC. Economic profit equals the firm's revenues minus its explicit costs.
OD. All of the above

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What type of cost is included in economic costs, but not included in accounting costs?a. Explicit costsb. Negative costsc. Normal profitd. Marginal coste. Unit costs
f production, C be the total cost, MC be the marginal cost, AFC, the average fixed cost, AVC, the aver ecimal places.) Output (q) VC C MC AFC AVC AC 1 $100 $64 112 $164 $64 48 $100.00 $64.00 $164.00 50.00 56 00 106.00 2 100 212 3. 100 144 244 32 33.33 48.00 4. 100 160 16 25.00 40.00 65.00 100 192 292 -32 20.00 58 40 9. 100 340 48 16.67 40.00 56.67 7. 100 -304 404 14.29 4343 57.71 100 -384 484 80 48.00 60.50 53.33 59.20 9. 100 480 580 96 11.11 64.44 10 100 592 112 10.00 F.
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3. A firm manufactures women clothing. The following costs are incurred by the firm: (i) Cloth and Pablos $45 000 S1 200 (ii) (ii) Permanent workers (salary) (iv) Part-time worker Thread $22 000 S 1300 $20 000 $89 500 (v) Rent (a) Calculate the total fixed cost of the firm. (b) Calculate the total variable cost of the firm.