Ralph owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue is $100,000 a year, and his rent is $36,000 a year. He pays his one employee $24,000 a year, and the cost of ingredients and overhead averages $60,000 a year. Also, Ralph forgoes $35,000 per year as the manager of a competing pizza restaurant nearby. His economic profit for the year was
Q: A company produces two products. FC = Total Fixed costs = $580 VC₁= variable costs from product 1 =…
A: Short run is the time period having at least one factor of production fixed.
Q: The table below shows the total costs faced by Gregory's Jewelry firm for different quantities of…
A: According to marginal analysis, a profit-maximizing firm produces the level of output at which the…
Q: A good's demand is given by: P = 286 - 3Q. At P = 197, the point price elasticity is: Enter as a…
A: Introduction Price elasticity measures the responsiveness of the quantity demanded or supplied of a…
Q: Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in…
A: Location Fixed Cost Variable Cost A 60000 30 B 80000 20 C 130000 10
Q: A firm's cost curves are given in the following table. 9 0 1 2 3 4 5 6 7 8 9 10 i) ii) iii) iv) TC…
A: TC(total cost) is the sum of fixed(TFC) and variable (TVC) costs. ATC(average total cost) is the…
Q: Which policies or payment mechanisms have the potential to lead to inefficient land use conversion…
A: The city fringe is the area that lies in the outer part/outskirts of a country/area that is…
Q: The following table represents the selling price of a pair of sneakers sold by the Spelete Galore…
A:
Q: THE PRICE OF DOMINO’S PIZZAS HAS RECENTLY INCREASED DUE TO A EFFORT TO INCREASE PROFITS. AS A…
A: Here, it is given that the price of Domino's Pizza has increased. When talking about the…
Q: Need help with this. Thanks ! 1. What is the difference between what Supply Side economists…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Linus has the utility function is U(x1, x2)= x1+3x2. Derive the ordinary demand function for…
A:
Q: Since you are the Head of Procurement for Nam Diaries, the Head of Sales gives you a sales contract…
A: b) CIF (cost, insurance, and freight) is a term for international trade under which the seller of…
Q: What will be produced in economic and how it will be produced?
A: The economic questions arise because of the scarcity of resources and the unlimited wants. Economies…
Q: 2. Can Giffin goods also be normal goods?
A: The kinds of goods that people buy depend on their personal income. When people have very high…
Q: q2a- Which case is NOT suitable for restricted least squares estimation imposing a restriction to…
A: RLS (Restricted least square) involves restricting the models such that the required estimates can…
Q: Corrective taxes and tradable pollution permits are which type of policies?
A: Corrective taxes are defined as taxes which are used to correct negative externalities and…
Q: If the consumption function is C=800+ 0.6(Y-7), output, Y,= $3,100 and net taxes, T, = $100, then…
A: Equilibrium Output It alludes to the level of output where the Aggregate Demand is equivalent to the…
Q: At what interest rate payable quarterly will payment of Php500.00 at the beginning of each 4 months…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: Price $ 100 S/S $ 150 $ 200 $ 250 $ $ $ 300 350 400 Quantity Demanded 40 35 30 25 20 15 10 Quantity…
A:
Q: a. b. Given the equation, L = 2r + 3k + 8(q-¹/2k¹/2) dL/dr = ? dL/dk = ?
A: Marginal value is the value derived from using an additional unit of input. Marginal value can be…
Q: Consider the graph below. MC are constant and equal to ATC. What is going to be producer surplus of…
A: MC(Marginal cost) refers to extra/additional costs that the firm has to bear in order to produce an…
Q: a. A firm operating under perfect competition is earning an economic profit of K20 million in the…
A: The structure of markets is defined as the classifications under which various forms of industries…
Q: 26. For a small country importing wheat, the international price of wheat is 30 . If this small…
A: Tariff is the method of tax used to decrease the demand (import) or supply (Export). The new price…
Q: In this question, you'll deal with two goods, and you'll have to solve for cross-price elasticity…
A: The demand for a good depends not only on its price but also on the price of its related goods. By…
Q: Under the [Select] electricity during daytime hours. Under the [Select] electricity consumption from…
A: Solar energy is a great alternative to the traditional energy. Due to exploitation and exhaustion…
Q: From the information from XYZ Highland below, 1 2 3 4 5…
A: Nominal GDP is the value of all final goods and services produced within the domestic territory of a…
Q: If your product/ service saves a customer $150 per week but the competition is selling a nearly…
A: In case of Perfect Competition there are are large number of firms selling identical products. An…
Q: Which statement(s) is (are) TRUE in the context of urban development? Group of answer choices The…
A: Urban development can be loosely defined as the planning and conservation of the infrastructure and…
Q: In an open-market operation, the Fed buys $15 million of government bonds from individual investors.…
A: Required reserves ratio is the percentage of deposits banks must hold as reserves.
Q: In the monopolistic competition model, a firm's (using a technology with increasing returns to scale…
A: Introduction Monopolistic competition refers to the market situation in which there are large…
Q: Mrs. Rochester earns $4500 a week and spends her entire income on computers and pastries, since…
A: In microeconomics, the marginal rate of substitution, also known as technical rate of substitution,…
Q: QUESTION 13 Which of the following is the initial impact of implementing a corrective tax aimed at…
A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…
Q: How can household borrowing in the united states be Reduced?
A: Household borrowing refers to the debt/liabilities that are undertaken by people in order to meet…
Q: Yogajothi is thinking of investing in a rental house. The total cost to purchase the house,…
A: Given, Yogajothi is thinking of investing in a rental house Total Cost to purchase : $230,000 He…
Q: Three investments are being studied by Bright Star Construction Limited. The table below provides…
A: Given Cash flow MARR=12% Final cash flow for the 3 plans Year Investment 1 Investment 2…
Q: Your current prices are $311 in the Southwestern region; $278 in the western-region and $240 in the…
A: Introduction Quantity demanded is the total amount of goods and services that consumers need or…
Q: The pen industry is an increasing cost industry. If a pen is an inferior good, and consumer's…
A: Inferior good is the good whose demand decreases with the increase in income. This means inferior…
Q: You quit your job as an analyst making $50,000. You then take your $500,000 in savings and open a…
A: Economic profit or loss is calculated as the difference between revenue received from the sale of…
Q: Hero borrowed P 200,000.00 with interest at the rate of 5% compounded semi-annually. He agrees to…
A: Given that, Borrowed amount = 200,000 Rate of interest = 5% (Compounded Semi-Annually) Semi-Annual…
Q: For the demand function q = D(p)=442-p, find the following. a) The elasticity b) The elasticity at p…
A: a) Elasticity of demand measures the percentage change in the quantity demanded due to the…
Q: An amortization of a debt is in a form of a gradient series of P10,000 on the first year, P9,500 on…
A: Given, Value at Year 1 = P10,000 Value at Year 2 = P9,500 Value at Year 3 = P9,000 Value at Year 4 =…
Q: The government introduces a subsidy scheme where renewable generators receive a subsidy payment for…
A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…
Q: 24 Calculate the perpetual equivalent annual cost (years 1 through infinity) of $5 million in year…
A: An asset's yearly cost of ownership, operation, and maintenance during its lifetime can be…
Q: Alicia has flipped a coin, and it has landed heads up 10 times in a row. She therefore thinks the…
A: The utility is maximized where the Marginal utility per dollar is same across the goods. If the…
Q: A company produces two products. FC = Total Fixed costs = $580 VC₁= variable costs from product 1 =…
A: The firm should produce where the firm is able to cover it's variable cost of production.
Q: Consider two sources of a non-uniformly mixed pollutant: one source with a high and the other one…
A: When production or consumption of a good causes some damage to a third party not involved in…
Q: Question-01: The following table shows the average retail price of butter and the Consumer Price…
A: The new price level obtained is the true price when the retail price of commodities is adjusted to…
Q: The results on the left panel is labeled Model A, and the right panel Model B. Which statement is…
A: The regression equation shows the relationship between dependent and independent variables. Simple…
Q: If the production function is Q = 30 + 22L + 30K, what's the most you can produce with 5 workers (L)…
A: As given Production Function Q = 30 + 22L + 30K Also K( capital) = 7 units L(workers) = 5
Q: i need help with the chart
A: The amount of interest one would be paying every month is known as a monthly interest rate. This…
Q: Let's say the inflation rate in an economy turns out to be higher than expected. Will the following…
A: Inflation is defined as the increase in price over a given period of time. Given, Inflation rate…
Ralph owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue is $100,000 a year, and his rent is $36,000 a year. He pays his one employee $24,000 a year, and the cost of ingredients and overhead averages $60,000 a year. Also, Ralph forgoes $35,000 per year as the manager of a competing pizza restaurant nearby. His economic profit for the year was:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Ralph owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue last year was $100,000, and his rent was $3,000 per month. He pays his one employee $2,000 per month, and the cost of ingredients and overhead averages $500 per month. Ralph could earn $35,000 per year as the manager of a competing pizza restaurant nearby. His total economic profit for the year was what?Aji Fatou is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $85,000 per year job as an engineer. If Aji Fatou thinks she can sell $570,000 worth of merchandise in a year, Aji Fatou's accounting profit is and her economic profit is (please put your answer for accounting profit and economic profit, in numerical values without any dollar sign, comma or decimal place). Should Aji Fatou open the store? (please put your answer as yes, no or indifferent, all lower cases).Kristin runs an antiques store. Last year, she earned $35,000 in revenue and had explicit costs of $8,000. Kristin could have made $35,000 testing information security equipment and received an additional $2,000 if she had used the company's inputs in a different way. Calculate Kristin’s economic profit.
- The graph presents the costs and revenue for a purely Cost and revenue competitive firm, where the market price is equal to $400 per unit of output. Use this information to determine the profit-maximizing output and profit for this firm. $800 (13,800) 750 700 Marginal cost 650 What is the profit-maximizing output of this purely 600 Average total cost (12,600) competitive firm? Round the answer to the nearest 550 whole number. 500 (4,500) (6,450) (12,450), 450 (10,400) 400 Marginal revenue (9,350) 350 profit maximizing output = units of output 300 (6,250) 250 Average variable cost (4,200) 200 What is the profit for the purely competitive firm that 150 |(1,150) produces at the output level in the first question. Round the 100 answer to the nearest whole number. 50 1 2 3 4 7 8 9 10 11 12 13 14 15 Units of output profit = $|Audra runs a movie memorabilia website. Last year, she earned $35,000 in revenue and had explicit costs of $8,000. Audra could have made $35,000 working for a security company and received an additional $7,500 if she had used the company's inputs in a different way. Calculate Audra’s economic profit.Suppose Tim runs a small business that manufactures frying pans. Assume that the market for frying pans is a price-taker market, and the market price is $20 per frying pan. The following graph shows Tim's total cost curve. Use the blue points (circle symbol) to plot total revenue, and the green points (triangle symbol) to plot profit for the first seven frying pans that Tim produces, including zero frying pans. 175 150 Total Revenue 125 Total Cost 100 Profit -25 -50 3 QUANTITY (Frying pans) 1 4 8 the firrt ceren foring nans he produces, and plot them on the following graph. Use the blue TOTAL COST AND REVENUE (Dollars)
- TOTAL COST AND REVENUE (Dollars) -25 Suppose Lorenzo runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a price-taker market, and the market price is $10 per teddy bear. The following graph shows Lorenzo's total cost curve. Use the blue points (circle symbol) to plot total revenue, and the green points (triangle symbol) to plot profit for the first seven teddy bears that Lorenzo produces, including zero teddy bears. 125 Total Cost 100 Total Revenue 75 -50 1 2 5 6 QUANTITY (Teddy bears) Profit Calculate Lorenzo's marginal revenue and marginal cost for the first seven teddy bears he produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. ? COSTS AND REVENUE (Dollars per teddy bear) 2 3 5 QUANTITY (Teddy bears) Marginal Revenue Marginal Cost Lorenzo's profit is maximized when he produces teddy bears. When he does this, the marginal…Kristin runs a rare book store. Last year, she earned $35,000 in revenue and had explicit costs of $8,000. Kristin could have made $29,750 working for a security company and received an additional $5,000 if she had used the company's inputs in a different way. Calculate Kristin's economic profit. $Question Jake is leaving Shoe Warehouse to open his own shoe boutique. Jake currently earns $40,000 a year at Shoe Warehouse, but he is expecting to earn $170, 000 per year once he is established. Jake has rented a storefront for $40,000 per year and will have to spend $11, 000 on inventory and furniture to start his business. Calculate jake's economic profit. Provide your answer below: FITRIFIT
- Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earned an accounting profit of $200 per acre. Is he currently earning an economic profit?Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm's capacity. If he adds one more worker, the firm's total monthly revenue will increase from $54,000 to $72,000. If he adds one more tractor, monthly revenue will increase from $54,000 to $66,000. Each additional worker costs $6,000 per month, while an additional tractor would also cost $6,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? The marginal revenue product of capital? $ b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/P)? What is the ratio of the marginal revenue product of capital to the price of capital (MRP /P d?Questión 8 óf 20 The graph presents the costs and revenue for a purely competitive firm, where the market price is equal to $600 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the profit-maximizing output Cost and revenue $2,400 2,200 Marginal cost 2,000 and profit for this firm. 1,800 What is the profit-maximizing output of this purely Average total cost 1,600 competitive firm? Round your answer to the nearest 1,400 whole number. 1,200 1,000 Average variable cost 800 profit-maximizing output : units of output 600 Marginal revenue 400 200 What is the maximum level of profits for this purely 0 1 3 4 6. 8. 9 10 11 12 13 14 competitive firm? Round your answer to the nearest positive Units of output or negative integer. maximum level of profits = $