Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 8RQ
To determine
Profit and loss in business partnership .
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Zevon's café has the following costs: $9,000 per month in rent, $4,000 per month in wages, $2,000 per
month in food and supplies, and $4,000 per month in insurance. All of the costs of production, excluding
their rent and insurance, can vary, depending on how many coffees are sold at the café. The cafe earns
$8,000 in revenue per month. Zevon should.
their cafe and will earn a profit of
Select one:
a. keep running; minus $11,000
b. shut down; minus $6,000
c. keep running; $2,000
d. shut down; zero
cross out
cross out
cross out
cross out
31. Modeling in manufacturing. A manufacturer of golf clubs finds
that the fixed costs are $5780 per week and the cost of producing
each set of clubs is $73.00. Each set of clubs can be sold for
$243.00.
a. Write the revenue function.
b. Write the cost function.
c. Write the profit function.
d. Find the break-even point.
Amal quits his job and gives up a salary of $50,000 per year to start software company. During Amal's first year in business, total revenue is $300,000, and his explicit financial costs are $250,000. What is Amal's economic profit from his first year in business?
Select one:
a. $0
b. $250,000
c. $50,000
d. $300,000
Chapter 2 Solutions
Macroeconomics
Ch. 2.2 - Prob. 1QQCh. 2.2 - Prob. 2QQCh. 2.2 - Prob. 3QQCh. 2.2 - Prob. 4QQCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQ
Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4P
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