Answered: A firm is earning negative economic…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Kindly assist on this two questions.

A firm is earning negative economic profit of $5,000. If its total revenue is $7,000 and it's implicit costs are $3,000, what must be it's explicit costs be?

a) $8000

b) $9000

c)$10,000

d)$12,000

c) Indeterminate

For question two (2) kindly see the attached image ..

2) what is the deadweigjt loss that results from this externality.

a) Q^E-Q^*

b) P^c-P^E

c) P^c-P^p

d) (P^c-P^p)* Q^E

e) (P^c-P^P) * (Q^E-Q^*) *½

Use the graph to answer the question that follows.
MSC
MPC
pc
MSB
Quantity
Price ($)

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