EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 2RQ
To determine
Put out a real world scenario of this given statement. And also decide if the statement would stand correct for replacing the economic profits with accounting profits.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Janet spends $20,000 per
year on painting supplies and storage space. She
recently received two job offers from a famous
marketing firm- one offer were for $100,000 per
year, and the other was for $90,000. However, she
turned both jobs down to continue a painting
career. If Janet sells 25 paintings per year at a price
of $8,000 each: a. What are her accounting
profits? Show your steps leading to your answer b.
What are her economic profits
Question 8 page 28 Janet spends $20,000 per
year on painting supplies and storage space. She
recently received two job offers from a famous
marketing firm- one offer were for $100,000 per
year, and the other was for $90,000. However, she
turned both jobs down to continue a painting
career. If Janet sells 25 paintings per year at a price
of $8,000 each: a. What are her accounting
profits? Show your steps leading to your answer b.
What are her economic profits? Show your work!
The 8th graders are volunteering to make and sell organic pesticides, called Sweet4Bees, that will protect
plants in local gardens without harming bees. The teens also plan to donate some of their product to
local nursing homes to use in their gardens. Jade is so excited! She's already started a business log in her
notebook, including a graph with a break-even point of 34 bottles sold.
Suppose all Jade's notes become true. What is the club's overall profit per ounce of pesticide solution,
when 26 bottles have been donated to the nursing homes? Round to the nearest cent.
Sweet4Bees Business Log
Sweet4Bees!
Production Expenses: $1.45 (empty bottle),
$0.05 (label), cost of ingredients (not sure right
now, I'll call it $m)
Taxes & Fees: none!
Sales
Selling Cost: $9.72/bottle
Start-Up Expenses: $65.88
Expenses
(high-speed mixer), $55 (pans),
$26 (kitchenware)
• Each bottle holds 12 oz of pesticide
concentrate.* Directions for preparing
solution: Mix 7 parts water to 1 part
Sweet4Bees…
Chapter 8 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 8.3 - Prob. 1MQCh. 8.3 - Prob. 2MQCh. 8.3 - Prob. 1.1MQCh. 8.3 - Prob. 2.1MQCh. 8.4 - Prob. 1TTACh. 8.4 - Prob. 2TTACh. 8.4 - Prob. 1MQCh. 8.4 - Prob. 2MQCh. 8.5 - Prob. 1TTACh. 8.5 - Prob. 2TTA
Ch. 8.5 - Prob. 1.1TTACh. 8.5 - Prob. 2.1TTACh. 8.5 - Prob. 1MQCh. 8.5 - Prob. 2MQCh. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQCh. 8 - Prob. 8.1PCh. 8 - Prob. 8.2PCh. 8 - Prob. 8.3PCh. 8 - Prob. 8.4PCh. 8 - Prob. 8.5PCh. 8 - Prob. 8.6PCh. 8 - Prob. 8.7PCh. 8 - Prob. 8.8PCh. 8 - Prob. 8.9PCh. 8 - Prob. 8.10P
Knowledge Booster
Similar questions
- Explain how a company could choose to get bigger, yet lower their average costs?arrow_forwardWhat are two examples of variable costs?arrow_forwardEven 9-year-olds Can Be Entrepreneurs Abi Smithson may only be 9, but that isn’t stopping her from developing a new product and the plan for a new business. Not satisfied with conventional sandals that leave ugly tan lines on the wearer’s feet, she conceived a summer shoe that could be customized to leave attractive designs as the feet tanned. Working with her dad, she wrote the business plan for The Love Sandal and brought her designs and the plan to Ryerson University’s business incubator, the Digital Media Zone, for assistance. There she was paired up with Robert Ott, chair of the Ryerson School of Fashion. He’s helped her flesh out design, market research, and branding. “I’m just so impressed with the idea…it’s so solid,” says Ott. “It’s the engineering and technical designing of the prototype where we need help. The creative part is all here. I think we haven’t seen anything like this in the market and that’s what makes this unique.” Abi’s business plan projects first year sales…arrow_forward
- When thinking about cost analysis in Microeconomics, what are the real-world problems that occur when applying theories of scale? Describe and give an example of each.arrow_forwardWhat cost would an accounting statement reveal should current decisions be based on accounting cost.arrow_forwardHow does the firm increase its production in the long-run? What input/s can it use to increase production?arrow_forward
- What is the economies of scale of General Motors?arrow_forwardIf marginal physical product is continually declining, what does marginal cost look like?arrow_forwardEconomic Mathematics Consider the problem of inventory costs and production to satisfy a demand x for a certain product. The data is as follows: Delivery period T = 8Starting inventory x (0) = 0Ending inventory x (8) = 144Inventory cost CI (x (t)) = 7x (t)Production flow cost Cp = 3.5x'2 (t)1. Write the problem of minimizing total costs over time 2. Check the second order conditions for minimization3. Raise the Euler equation and the differential equation to solve4. Find the paths of inventory, production and total costs5. Graph the inventory and production lanes (use 0.5 increments over time)arrow_forward
- "If the law of diminishing returns did not hold, we can produce all the food the world needs in one small patch of land." Do you agree, disagree, or agree in part? Think of land as the only fixed factor and fertilizer as the only variable factor. How much food could you grow in the patch of land if the marginal product of fertilizer were constant regardless of the amount used per unit of land?arrow_forwardDistinguish between explicit and implicit costs, giving examples of each. What are some explicit and implicit costs of attending college? Why does the economist classify normal profit as a cost? Is economic profit a cost of production?arrow_forwardWrite a paragraph to explain to your CEO that based on using regression analysis, through using the solver tool of excel, recalculate the optimum units to produced this month is 800 pro 200 mini to have the maximize revenue of $174,400.00. Explain what/why would it be if you make any changes in the units to stay within the constraints that you have it would produce less money.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning