__ ab.C.d6.CAMINTEASSUME THAT YOU OWN AN ENGINEERING FIRM THAT HAS THE FOLLOWING COST ANDREVENUE INFORMATION FOR LAST YEAR:-total revenue from operations..-wages of clerks and assistants-$100,000 of your money is invested in the firm; itcould earn 5% interest if invested elsewhere (05 x $100,000).-cost of inventory, supplies, and equipment...-you own the building; it could be rented to another firmfor $3,500 per month (12 x $4,500)-utilities and taxes-you manage the firm; you could earn $95,000 working in thenext best alternativeDetermine each of the following (show all your work):explicit costsimplicit costsaccounting profiteconomic profit$650,000165,0005,00075,00054,00045,00095,000

An explicit cost is a direct payment made to others in the course of running a business, such as…

Answered: a b. C. Determine each of the following…

a b. C. Determine each of the following (show all your work): explicit costs implicit costs accounting profit economic profit

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.5IP

See similar textbooks

Related questions

Q: What is the level of aggregate expen level of income? Graph the aggregate expenditures function.

A: Aggregate expenditure is the sum of consumption, investment, government spending, and net exports.…

Q: A company paid $200,000 eight years ago for a specialized machine that has no salvage value and is…

A: Cost, in popular usage, is the financial worth of the goods and services that producers and…

Q: Suppose that Congress caps executive pay at a level below the market equilibrium. The graph shows…

A: Demand curve, is a graphic representation of the connection between product cost and the quantity of…

Q: Click on the icon to read the news clip, then answer the following questions. The graph shows the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: $30 a week boost to minimum wage The government increased the minimum wage by $30 a week to $570 a…

A: Please find the answer below. SKILLED LABOUR: Skilled labour refers to highly trained, educated,…

Q: Use the graphical illustration to answer the following questions: (if required, use the discreet…

A: As per the profit maximization rule, The profit-maximizing quantity of output is where the marginal…

Q: tion 11 nation's potential output/GDP is best described as: The maximum growth rate of output/GDP a…

A: GDP is the market value of final goods and services produced in the country within a period of time

Q: where is the explanation of the new optimal profit if total costs rise to $353?

A: According to Bartleby guidelines we answer only one question per session and hence the last tutor…

Q: The manager of a sole distributorship for a famous brand of automobiles was discussing with the…

A: The demand function addresses the connection between the quantity demanded of a product(dependent…

Q: How might imperfect information impact price? Group of answer choices Because buyers cannot…

Q: Fewer than 10 arrivals with A = 6.40. (Round your answer to 5 decimal pl bability At least 9…

A: Probability could assist with molding successful money related and fiscal strategies and to foster…

Q: If the cross-price elasticity between ketchup and hamburgers is –1.2, a 4% increase in the price of…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: introduces a production quota of 2 billion pound e production quota. e production quota. ers lose;…

A: We have given the graph which shows the market for walnuts. Equilibrium in the walnuts market…

Q: if total revenue function is given as; TR=(q2-8q+7)4 find the marginal revenue if the demand…

A: Total Revenue is the Price times quantity or = P*Q. The Marginal Revenue is calculated by the…

Q: Why is better to use HDI rather than GDP to look at the development of a country?

A: In an economy, GDP is an economic measure to compute the economic growth in terms of income or…

Q: The COVID-19 pandemic has caused an unprecedented increase in savings in many countries around the…

A: As a negative effect of COVID -19 economies have taken a hit on consumer sentiment which directly…

Q: The graph shows the marginal private benefit from a veterinary degree and the marginal cost of…

A: Marginal social benefit is the adjustment of benefits related with the utilization of an extra unit…

Q: A firm will shut down in the short-run whenever* price is less than ATC. price is less than AFC.…

A: A short run is a time period in which at least one factor of production is fixed and the rest can be…

Q: The El Dorado Star is the only newspaper in El Dorado, New Mexico. Certainly, the Star competes with…

A: The total profit is how much cash you have left over after you figure out all of your costs of…

Q: The method of allocation that most stores use during Thanksgiving sales is A. a combination of…

A: In the United States, Thanksgiving sales refers to the economic exchange of goods and services…

Q: How did Adam Smith justify the ethics of capitalism?

A: Adam Smith's theories are frequently regarded as the foundation of modern capitalism. He advocated…

Q: Canada's dairy industry is a rich, closed club If you want to be a dairy farmer, you buy a plot of…

A: A deadweight loss is an expense for society made by market inefficiency, which happens when supply…

Q: Click on the icon to read the news clip, t The graph shows the market for milk in Vene- Draw a shape…

A: Deadweight loss alludes to the advantages lost by consumers as well as producers when markets don't…

Q: A company has approved a car plan for its six senior officers in which the company will shoulder…

Q: Price (dollars per hamburger) 0 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 Quantity demanded Quantity…

A: Price is determined through market mechanism where demand and supply forces interacts and determines…

Q: The table shows the demand and supply schedules for hamburgers. What is the equilibrium price, and…

A: The market is in equilibrium where the quantity demanded equals the quantity supplied. The…

Q: The following statements are FALSE about market failures EXCEPT a. An efficient monopoly in…

A: Market failure is an economic phrase used to describe an inefficient market when customer demand is…

Q: a2

A: Condition of profit maximization Marginal revenue = marginal cost. In other words, the profit of…

Q: 6. Use the following table to answer these ques Y C | G $500 $590 $680 $770 $860 $950 $ 500 $ 600 $…

A: Since you have asked multiple questions, and according to policy, we can solve only 1 question and…

Q: The graph illustrates the market for Internet service Draw a point to indicate the market price of a…

A: Gathering taxes is a crucial way for nations to create public revenues that make it conceivable to…

Q: When applied to a public good, 'non-rival' means that Select one: A. Consumption of the good by one…

A: Public goods are those goods which are usually provided by the government to the people. These goods…

Q: Notice that real GDP trends upward over time but experiences ups and downs in the short run. These…

A: Hi ! Thank you for the question. we are authorized to answer three subparts at a time. Since you…

Q: Provide cash-flow diagram if applicable. The PH debt as of today amounts to 12 trillion. This…

A: Given, P H debt = 12000000000000 The Philippines is estimated to have 110 million people, with the…

Q: Suppose that Congress caps executive pay at a level below the equilibrium. The quantity of…

A: Since you have asked multiple questions, and according to policy, we can solve only 1 question, and…

Q: What is demand and supply

A: Consumer buys goods and services and consumes them in order to satisfy their wants. Producer…

Q: Give two examples of derived demand.

Q: How many workers are employed? Total population Working age population, non-institutionalised, non-…

A: Given: Total Population = 60 million Working Age Population = 40 million Unemployed people = 1.5…

Q: If revenues are greater than total variable costs of production but less than total costs, breaks…

A: As the two questions are different so answer is provided to the first question. "Firms/Businesses…

Q: When price is less than marginal cost, a profit-maximizing producer in perfect competition will:

A: In the case of perfect competition, each firm takes the market price as given and hence produces an…

Q: The graph illustrates the unregulated market for pulp and paper. The mills dump their waste in a…

A: Marginal Social Costs:- The overall price society pays for the creation of an additional unit or for…

Q: Which of the following policies would likely increase productivity all else the same? A increasing…

A: At the marketplace, productivity refers to the total amount of goods and services produced with the…

Q: example a(n): A. sunk cost B. out-of-pocket cost C. opportunity cost D. incremental cost

A: Marginal cost is the cost that the manufacturer spends to manufacture one more unit of the good. The…

Q: nsurance buyers have more information about whether they are high-risk or low-risk than the…

A: Asymmetric information exists where information is not distributed between the buyer and sellers.…

Q: The world’s R/P ratio for oil has been approximately 50 years for the last two decades. Explain what…

A: The reserves-to-production ratio or the R/P ratio commonly used to estimate how many years' worth of…

Q: A project is estimated to cost P120k, last 8 years & have a salvage value of P20k. The annual gross…

A: Using a concept known as net present value, or NPV, it is possible to determine the overall value of…

Q: Describe the strategic production decision of firms in an oligopoly.

Q: er a banking system where the Federal Reserve uses required reserves to control the money supply.…

A: The money-multiplier process defines how an increment in the monetary base causes the money supply…

Q: What would the best society look like? Will the United States ever have universal health care?

A: A healthy society is about something beyond forestalling wounds and decreasing the loss of life from…

Q: Venezuelans organize to overcome food shortages The government of Venezuela controls the price of…

A: Please find the answer below. SUPPLY: Supply in economics is defined as the total amount of a…

Q: The spending multiplier, m, is 1/(1-MPC). a) If the MPC is 0.9, what is the spending multiplier? b)…

A: Marginal Propensity to Consume is the proportion of an increase in income that gets spent on…

Concept explainers

Policy Instruments for Environmental protection

Policy Instruments for Environmental Protection link policy development and decision making to policy implementation to protect the environment and promote sustainable development. Economic growth brings great risk to the environment and often puts increased pressure on environmental resources. But it is the responsibility of the policymakers to ensure that the risk caused to the environment through developmental projects is kept in check. Environmental protection is central to sustainable development. They can be both beneficial and equitable. Environment protection policies can be used to deter environmentally damaging activities. They also improve social equity and raise revenue. 

Question

a
b.
C.
d
6.
CAMINTE
ASSUME THAT YOU OWN AN ENGINEERING FIRM THAT HAS THE FOLLOWING COST AND
REVENUE INFORMATION FOR LAST YEAR:
-total revenue from operations..
-wages of clerks and assistants
-$100,000 of your money is invested in the firm; it
could earn 5% interest if invested elsewhere (05 x $100,000).
-cost of inventory, supplies, and equipment...
-you own the building; it could be rented to another firm
for $3,500 per month (12 x $4,500)
-utilities and taxes
-you manage the firm; you could earn $95,000 working in the
next best alternative
Determine each of the following (show all your work):
explicit costs
implicit costs
accounting profit
economic profit
$650,000
165,000
5,000
75,000
54,000
45,000
95,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
What shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
What is die difference between accounting and economic profit?
How does fixed cost affect marginal cost? Why is this relationship important?
What are diminishing marginal returns as they relate to costs?
Cost Analysis A company manufactures fuel tanks for cars. The total weekly cost (in dollars) of producing X fuel tanks is given by.. C(x) = 10000 +90x - 0.05x² %3D Find the exact cost of producing the 501st item. (Round to the nearest 2 decimal places, if needed) HINT: Steps to fiınd actual or exact (cost/revenue/profit) 1. Find the cost of x = 5003B 2. Then find the cost of x = 501%3; 3. Then subtract ASUS 3 近

A blant broduces dayof A 15000gallons per r chemical cost partiçular 2.5millions in 31987.when the Cost index was. 1674. The Cost now for louilding. that produces "40,000 gallous per day with fexponent) of08 Milligns. Similar plant cost capacity factor 5 Millions. what's the st indexi now. र
QUESTION 48 A fiem has a Total Cost of $1000, of which $300 is Fixed Cost. If the firm a currently producing 35 units, what is the firm's Average Variable Cost (AVcy? 20 35 15 40
Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0 90 0 0 0 0 3 1 4 90 20 110 22.5 5 27.5 5 3 2 90 90 40 130 1 0.444 1.444 0.233 3 3 160 90 60 150 0.563 0.375 0.938 0.286 3 4 200 90 80 170 0.45 0.400 0.85 0.5 3 5 230 90 100 190 0.391 0.435 0.826 0.667 3 6 250 90 120 210 0.36 0.480 0.84 1 3 7 260 90 140 230 0.346 0.538 0.885 2 3 8 265 90 160 250 0.340 0.604 0.943 4 If the price of the output is $1, how many units of output should the firm produce to maximize profit? What is the firm’s profit level?
Please no written by hand and no emage 1) Complete the following table: Total Cost 50 Output 0 345 WNIO 1 2 3 6 BORONG Output 0 60 123456 75 100 150 225 400 2) Apu leases 2 squishy machines to produce 40 squishies in the short run. Apu's short-run cost function is: C(q, K) = 0.85-9² +0.5K, where q is the number of squishies produced and K is the number of squishy K² Total Cost Variable Cost machines used. Apu's long-run cost function is: CLR(q) = 1.139 what happens to Apu's short-run average total cost of producing 40 squishies? Does Apu's long-run cost function exhibit increasing, constant, or decreasing returns to scale? 3) Complete the following table: 90 180 Fixed Cost Variable Fixed Cost Cost 60 10 Marginal Cost 80 Marginal Cost 20 213. 50 If Apu decides to lease 7 squishy machines,
Units of fixed input K Labor Hours (L) Output (Q) TFC TVC TC AFC AVC ATC MC 3 0 0 90 0 90 0 0 0 0 3 1 4 90 20 110 22.5 5 27.5 5 3 2 90 90 40 130 1 0.444 1.444 0.233 3 3 160 90 60 150 0.563 0.375 0.938 0.286 3 4 200 90 80 170 0.45 0.400 0.85 0.5 3 5 230 90 100 190 0.391 0.435 0.826 0.667 3 6 250 90 120 210 0.36 0.480 0.84 1 3 7 260 90 140 230 0.346 0.538 0.885 2 3 8 265 90 160 250 0.340 0.604 0.943 4 If the firm produces 265 units of output and sells it at $1 per unit, is it making profits or losses? How much are they making?