A. Complete the table. A small firm operating in a purely competitive market, has fixed costs of $45 per day, compensate each employee $96 per day, and has daily output and raw material costs as indicated in the table below.  b. If the company can sell every product it makes for $125 each, how many units should the company make each day? How many employees will it hire each day? What is the firm's MRP for the last month hired? Will the company make an economic profit producing this quantity of output? Why or why not?

Q: i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in…

A: We will use the ‘Principle of marginal benefit and marginal cost here’. This simply says a firm…

Q: Use the line drawing tool to add the short-run and long-run rental housing supply curves to the…

A: Market dynamics is the dynamic interaction of supply and demand, price changes, and consumer…

Q: 5. A firm pays $320 per day in rent for equipment used to make shoes. The total cost of producing 20…

A: Given: Rent for equipment=$320 per day Total Cost of 20 pairs=1200

Q: If a retail clothing shop has to pay monthly rental of A$10,000 and has variable costs of A$20,000…

A: A firm faces different shut down constraint in different time periods such that in short-run or in…

Q: For a supermarket, would the overtime paid to the store's manager be classified as a fixed cost?…

A: In accounting and economics, fixed costs, also known as indirect costs or overhead costs, are…

Q: The following presents the costs and revenues for a firm. Quantity Total Cost…

A:

Q: What are the kinds of cost which firm face in short run. Explain theoretically and graphically the…

A: Short run refers to the time period where some of the factors of production remain same throughout…

Q: Use the following data to analyze the condition when the product proce is set at $41 Assume the…

A: Profit maximizing conditions for a competitive market are - Necessary Condition : P = MC  Sufficient…

Q: # Units Produced Total Revenue Total Costs 1 100 50 180 110 3 250 180 4 290 270 310 380 2. 5.

A:

Q: The table below shows the short-run production function for Michelle's Accounting Company. Number…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: 19

A: In order to get the marginal cost of producing additional bottles of mineral water, we need to…

Q: Suppose that a local taco shop's costs are described in the table below. At what point does this…

A: Marginal product is the units produced due to an additional labor hired.  Marginal product is…

Q: Suppose that Smith Co sells 15 coats for $69.00 per coat. Each coat costs $44.00 to produce, and…

A: Microeconomic firm theory investigates how businesses maximize profits through manufacturing,…

Q: Refer to the figure above. Fixed cost for this firm is: A. $66 B. $64 C. $50 D. $14   The…

A: To determine the fixed cost for this firm, we need to understand that fixed costs are expenses that…

Q: Complete the following table of various types of cost for a firm in the short run. Assume that Total…

A: The expenses that are incurred for carrying out day-to-day transactions are known as costs. There…

Q: The same firm produces 500 lawnmowers per week. It hires 20 full-time workers (40 hours/week) at an…

A: Given that, Units produced = 500 Here , hiring workers and raw materials are variable cost . Raw…

Q: None

A: From the analysis of the cost curves and the given price of $12, we can draw several important…

Q: In a perfectly competitive market there is a donut shop that sells 1,200 donuts daily. Each donut…

A: A market is compe­titive when many selle­rs and buyers hop in to swap their products or service­s.…

Q: Question 21.21.   Which would be an implicit cost for a firm?  The cost         of worker wages and…

A: In the market, when an individual makes a decision, he needs to choose one product over another due…

Q: 2. A firm's production function is Q = L0.5K 0.5. It is the short run and K is fixed at 100. The…

A: The production function is the mathematical relationship between different bundles of inputs and…

Q: (1) Use the graph to answer the question. The graph illustrates that A-the firm's fixed costs are…

A: Question 1:  Answer :  B-the firm is producing fewer units at every cost level  Explanation:…

Q: 15. Suppose q = f(L,K) =2L1/2 + 2K1/2 and the prices or labor and capital are w=$1, r=$1. What is…

A: In economics MRTS refers to the substitution of labor for capital that determines the rate at which…

Q: Consider the table below showing the costs for a firm. Quantity Fixed Cost Variable Cost Total Cost…

A: Total cost is the sum of fixed and variable cost. Fixed cost remains same at all level of output.…

Q: A firm analyzes the effects of raising its current level of output and finds that doing so will…

A: The firm average total cost increases if the firm increases its current level of output. The average…

Q: A firm produces and sells a good for $119. To produce this good they purchased materials for $14,…

A: Profit can be calculated by using the formula given below:

Q: Use the cost curves below to answer the following questions. 120 90 80 70 40 30 200 250 300 500 MC…

A: In perfect competition,  A firm will produce where P = MC  P is the market price MC is the marginal…

Q: Question 21.21. Which would be an implicit cost for a firm?  The cost         of worker wages and…

A: --- Implicit cost is the cost that represents the opportunity cost of consuming resources which are…

Q: 53) Refer to Table 12-1. Suppose the fixed cost of production rises by $500 and the price per unit…

A: Total Cost: The term total cost refers to the cost that encompasses two types of cost which are…

Q: The gap that exists in a graph between total costs and fixed costs represents the variable costs of…

A: Total cost is the sum of variable and fixed costs. TC = TVC + TFC

Q: Wheel Co. Ltd, operating in a competitive industry has a cost function: TC=5+13Q2 - 3Q. This firm…

A: Price = $18  Total Revenue (TR) = P*Q = 18Q Marginal Revenue (MR) = 18 Total Cost (TC) = 5+13Q2-3Q3…

Q: What does it mean to be operating a firm in the "long run?"

A: "Since you have asked multiple questions, we will only first question for you. If you have any other…

Q: COURSE: ECONOMY A company has a total cost function TC = 80+3q+2q2 and a marginal cost function MC…

A: The process of calculating the output and price levels at which a business may maximise its earnings…

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: Assume that this is the cost function for a perfectly competitive firm: Cost (q) = 5 q² + 20 For…

A: Answer: The following formulas will be used: AVC=VCqAFC=FCqATC=TCq    (TC=total…

Q: Question 21.21. Which would be an implicit cost for a firm? The cost of worker wages and salaries…

A: We know that Implicit cost is the cost that represents the opportunity cost of consuming resources…

Q: In the short run, a firm's total costs of producing 100 units of output equal $10,000. If it…

A: The firms, and businesses are the entities who are involved in the production activities, and the…

Q: Q9. A firm sold 20,000 SD cards at $50 each in the previous year. The firm also spent $600,000 on…

A: Sales = 20,000 SD card @ 50 each Labour Cost = 6,00,000 Capital Equipment = 50,000 Raw material =…

Q: b) A garment factory’s production function is provided in the table.The gross profit per unit…

A: Given: To Find: If the wage rate is $1,000 a week, how many workers should the factory hire…

Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?